Objective In the ecologically fragile Qinghai-Xizang Plateau region, long-distance pipelines are preferred for transporting oil and gas considering their advantages of high capacity and minimal ecological impact. Despite the enactment of the Law of the People’s Republic of China on Ecological Conservation on the Qinghai-Xizang Plateau to mitigate ecological risks, the project costs for oil and gas pipelines remain significantly constrained by the region’s unique geographical and climatic challenges, posing an urgent issue that requires resolution.
Methods The geographical and climatic characteristics of the Qinghai-Xizang Plateau—such as the high altitude, cold and oxygen-deficient conditions, mountainous and water-rich terrain, fragile ecology, and complex permafrost—were analyzed from the perspective of linear engineering for long-distance oil and gas pipelines. The pricing basis for project cost calculation in this special plateau region, as outlined in the Quota of Construction and Installation Engineering Costs for Petroleum Projects (2022 Edition), along with the adjustment coefficient for altitude-induced efficiency reduction specified in the Quota for Construction Engineering Costs in the Xizang Autonomous Region (2016 Edition), were examined in detail. The effects of these geographical and climatic factors on construction and installation engineering costs, equipment procurement costs, other project construction expenses, and contingency fees were systematically evaluated. By referencing approaches adopted by the power industry for similar conditions in long-distance power transmission projects in the Qinghai-Xizang Plateau region, a pricing strategy for oil and gas pipeline cost components in this region was developed.
Results The adjustment coefficient for altitude-induced efficiency reduction in the quota for the Xizang Autonomous Region was more precise than that for petroleum projects. The adjustment coefficient for altitude-induced efficiency reduction for construction projects in the petroleum industry could not be determined according to the Quota of Construction and Installation Engineering Costs for Petroleum Projects (2022 Edition). Improved designs of stations and valve chambers along the pipeline had increased the proportion of monitoring and skid-mounted integrated equipment, raising equipment procurement costs. Strict environmental impact assessments and high land acquisition and compensation expenses in protected areas of the Qinghai-Xizang Plateau region had further elevated project costs. Additionally, the high risk of permafrost and natural disasters had increased contingency reserves.
Conclusion When constructing long-distance oil and gas pipelines in the Qinghai-Xizang Plateau region, the petroleum industry should develop and regularly update supplementary budget quotas specific to the region. The pricing strategy should incorporate a quantified adjustment coefficient for altitude-induced efficiency reduction, account for plateau-specific equipment and material costs, and consider additional expenses related to ecological protection and regional characteristics.
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