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An Economic Analysis of Pipeline Transport in Flanders

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An Economic Analysis of Pipeline Transport in Flanders UNIVERSITEIT GENT FACULTEIT ECONOMIE EN BEDRIJFSKUNDE ACADEMIEJAAR 2009 – 2010 An economic analysis of pipeline transport in Flanders Masterproef voorgedragen tot het bekomen van de graad van Master in de Toegepaste Economische Wetenschappen Thomas Capiau Onder leiding van Prof. dr. Eddy Van de Voorde UNIVERSITEIT GENT FACULTEIT ECONOMIE EN BEDRIJFSKUNDE ACADEMIEJAAR 2009 – 2010 An economic analysis of pipeline transport in Flanders Masterproef voorgedragen tot het bekomen van de graad van Master in de Toegepaste Economische Wetenschappen Thomas Capiau Onder leiding van Prof. dr. Eddy Van de Voorde PERMISSION Ondergetekende verklaart dat de inhoud van deze masterproef mag geraadpleegd en/of gereproduceerd worden, mits bronvermelding. Thomas Capiau Woord vooraf Het voorbije jaar heb ik me met volle overgave gestort in de wereld van pijpleidingtransport. Het resultaat is een economische analyse van pijpleidingtransport in Vlaanderen. Bij aanvang zou ik een aantal mensen willen bedanken die mij geholpen hebben bij het tot stand brengen van mijn masterproef. Deze masterproef zou nooit verwezenlijkt zijn zonder de hulp Prof. dr. Eddy Van de Voorde en Prof. dr. Thierry Vanelslander. Een oprechte dank voor de kritische opmerkingen en de interessante voorstellen. Evenzeer wil ik mijn familie bedanken voor de morele steun en positieve aanmoediging. In het bijzonder wil ik mijn grootvader bedanken voor de nodige contacten bij firma Denys. Tevens wil ik mijn dank betuigen aan meneer Goethals die mij geholpen heeft bij het dissecteren van Fluxys. Ik hoop dat ik met deze masterproef een bijdrage heb geleverd aan de bestaande studies. I Content Introduction ............................................................................................................................................. 1 1. History ................................................................................................................................................. 2 2. Typology .............................................................................................................................................. 2 2.1. Energy pipelines ........................................................................................................................... 3 2.2. Water and sewage pipelines ........................................................................................................ 4 2.3. Slurry pipelines ............................................................................................................................. 4 2.4. Pneumatic pipelines ..................................................................................................................... 5 2.5. Capsule pipelines .......................................................................................................................... 5 2.6. Other pipelines ............................................................................................................................. 7 3. SWOT-analysis ..................................................................................................................................... 7 3.1. Pipeline as a mode of transport ................................................................................................... 8 3.1.2. Benefits ................................................................................................................................ 10 3.1.3. Drawbacks ........................................................................................................................... 11 3.1.4.Opportunities ....................................................................................................................... 12 3.1.5. Hostile environments .......................................................................................................... 13 3.1.6. Bottlenecks .......................................................................................................................... 14 4. Pipeline versus other modes of transport ......................................................................................... 16 4.1. Pipeline transportation VS air transportation ............................................................................ 19 4.2. Pipeline transportation VS rail road transportation ................................................................... 19 4.3. Pipeline transportation VS sea shipping ..................................................................................... 20 4.4. Pipeline transportation VS road transportation ......................................................................... 20 5. Pipeline transportation...................................................................................................................... 22 6. Pipeline systems ................................................................................................................................ 23 6.1. Natural gas .................................................................................................................................. 23 6.1.1. Fluxys ................................................................................................................................... 23 6.1.2. CREG (Commissie voor de Regulering van de Elektriciteit en het Gas) ............................... 35 6.2. Petroleum ................................................................................................................................... 36 6.2.1. The Belgian Pipeline Organisation ....................................................................................... 37 6.2.2. RAPL ..................................................................................................................................... 42 6.2.3. Example: Kerosene pipeline ................................................................................................ 42 6.3. Water .......................................................................................................................................... 43 II 6.3.1. SVW (Samenwerking Vlaams Water) .................................................................................. 44 6.3.2. VMW (Vlaamse Maatschappij voor Watervoorziening) ...................................................... 45 6.4. Technical gasses ......................................................................................................................... 46 6.4.1. Air Liquide ............................................................................................................................ 47 6.5. Chemicals .................................................................................................................................... 48 7. The pipeline network in Flanders ...................................................................................................... 49 8. Price mechanism and governmental control .................................................................................... 49 9. Recommendations ............................................................................................................................. 51 10. Conclusion ....................................................................................................................................... 54 Sources .................................................................................................................................................. VII Appendix 1 ............................................................................................................................................... X Appendix 2 ............................................................................................................................................ XIII III Abbreviations BC Before Christ TAPS Trans Alaska Pipeline System PCP pneumatic capsule pipeline HCP hydraulic capsule pipeline CLP coal log pipeline CONCAWE CONservation of Clean Air and Water in Europe RAPL Rotterdam Antwerp PipeLine LNG liquefied natural gas BBL Balgzand Bacton Line CREG Commissie voor de Regulering van de Elektriciteit en het Gas KLIM Kabels en Leidingen Informatie Meldpunt KLIP Kabel en Leiding Informatie Portaal BPO Belgian Pipeline Organisation CEPS Central European Pipeline System CEPMO Central Europe Pipeline Management Organisation NPS North Atlantic Treaty Organisation Pipeline System PLUTO Pipeline Under The Ocean CEPMO BoD CEPMO Board of Directors CEPMA Central European Pipeline Management Agency NMDW Nationale Maatschappij der Waterleidingen VMW Vlaamse Maatschappij voor Watervoorziening SVW Samenwerking Vlaams Water IWA International Water Association ARA-area Amsterdam-Rotterdam-Antwerp area IV Tables Table 1: Different types of pipeline Table 2: SWOT-analysis Table 3: Externalities Table 4: 3 conditions Table 5: General characteristics of the pipeline network in Flanders V Figures Figure 1: A pneumatic capsule pipeline Figure 2: A coal log Figure 3: Emission Figure 4: Emission (environmental impact calculation of transport) Figure 5: Safety ranking Figure 6: Distribution of incidents per cause of the European Gas Incident Data Group Figure 7: Fluxys at the centre of Western Europe’s gas pipeline network Figure 8: Infrastructure Figure 9: New pipelines 2008 & 2009 Figure 10: New capacity Figure 11: Fluctuation in demand Figure 12: The BBL Figure 13: A gauge pig Figure 14: Investments Figure 15: The CEPS map Figure 16: Distribution of the water companies in Flanders Figure 17: Air Liquide its
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