Abstract: Mixed oil treatment in the terminal station of Shandong-Anhui Products Oil Pipeline can not be done. According to the operation laws of contaminated oil in the pipeline, this paper carries out comprehensive analysis on the selection, operation mode, economic benefit of installing the contaminated oil facilities in station, etc, and compares it with other modes in terms of economy, such as constructing distillation units and contaminated oil transportation devices, etc. A method to install the contaminated oil treatment facilities in intermediate station of end section of the pipeline is proposed. Application results show that by installing the contaminated treatment facilities in intermediate station, the increase of contaminated oil in pipeline is small, and that back mixing volume of contaminated oil becomes bigger, which improves the capacity and flexibility of back mixing treatment of contaminated oil in the products oil pipeline, more conducive to the pipeline’s optimization operation, ensuring the recovery of the investment in 5 to 7 years.