Influencing factors for the economic output limits of West-East Gas Pipeline upgrading and expansion projects

To meet the demand for gas consumption by downstream users of West-East Gas Pipeline Company, it is necessary to upgrade and expand about 20 original gas stations and trunk-line stations. However, the planned investment is limited while the demand of the downstream users is great, so it is essential to study the economic output of each upgrading and expansion project. Three independent variables (pipeline transportation price, engineering cost and manpower of the station) which influence the dependent variable (economic output) the most were selected out according to the actual situations of upgrading and expansion engineering. Then, multivariate linear regression analysis was conducted by virtue of the statistical analysis software SPSS. It is shown that there is a highly linear correlation between independent variables and dependent variable and a multivariate linear regression model between them is established. The model is applicable to make upgrading and expansion projects' proposals and the economic evaluation of feasibility study. In this model, the economic output of upgrading and expansion projects can be predicted quickly and ranked. The model provides the data support and theoretical basis for project selection and rapid decision making.