This chapter presents the step-by-step procedure required for the

optimization of an off-line pipeline design. In the first part of this

tutorial, you will look at the optimal design based only on capital
cost considerations. Then, you will include the operating costs over
the lifetime of the pipeline (10 years) and examine the effect the
operating costs have on the overall design strategy.

In this simulation, a pipeline is designed to deliver gas at a rate of

1200 MMSCFD at a minimum pressure of 900 psi from two
offshore fields. Table 5-1 and Table 5-2 provide additional process
details including piping and compressor capital expenditures.

 The overall capital cost is the sum of the cost of purchasing and
laying pipe and purchasing the compressors.

The overall capital cost is therefore a linear function of the ID of the

two pipeline segments and compressor power:

PIPEPHASE optimizes the design to minimize the overall capital

costs by varying the pipe diameters and the sizes of the compressors
at the two platforms. Apart from the delivery target, there are three
additional design and operating constraints that must be taken into
consideration:
Pipe sizes are available only in sizes 24"-40" with a maximum
operating pressure of 2475 psi.
Due to limited space on each platform, the maximum capacity
of each compressor is 50000 HP.
Both pipeline sections must be built as the capacity of the plat-
form for field A is inadequate to meet the overall delivery
requirement.
The overall network is shown in Figure 5-1.

First, you must open a new project:

Select the option from the menu. The Windows
explorer dialog box is displayed. Next, you must supply a name
for this new simulation.The Create New Simulation window
appears for laying down your process flowsheet. By default,
this simulation will be created in the
directory.
Type in TUTORIAL in the File Name data entry field as shown
in Figure 5-2.
Then, click the button.

Tip:By using the toolbar icons, you reduce the number of mouse
actions required for a selection. For example, you can click the
toolbar button to create a new simulation.
PIPEPHASE will now automatically take you through Simulation
Setup Wizard .

Click the button.

Select the Network model Simulation Type.

Click the button.

Select Gas as Fluid Type.

Click the button.

Select Petroleum as Default Units of Measurement.

Click the button.

Confirm your selections.

Click on Finish.The Fluid Property Data window will appear as
shown in Figure 5-8.
Click Edit on the Fluid Property Data window.
The Single Phase Gas PVT Data window will then appear.

 Enter a specific gravity of 0.69 in the Gas Gravity field and the
following composition of contaminants:

The completed window will appear as shown in Figure 5-9.

Click the button to continue.

 To create a second property data set.
Click the button on Fluid Property Data window. This
brings up the Single Phase Gas PVT Data window with Set
Number already set to 2.
Enter a specific gravity of 0.701 in the Gas Gravity field and
the following composition of contaminants:

The completed window will appear as shown in Figure 5-10.

Click the button. The Fluid Property Data window will

appear as shown in Figure 5-11.

Click the button to continue.

This will bring up A Note Box as shown in Figure 5-12 that inform
the users about the definition of the colors that are used in the GUI.

Click the OK button to continue.

The next step is to enter the simulation details like description,
definition, input unit of measurement.
From the the toolbar select General/Simulation Description.
This will bring up the Simulation Description window shown
in Figure 5-13.

To complete this data entry window:

Enter the Project, Problem, User, Date, Site, and Description data
entry fields and click the button.
From the toolbar select General/Simulation Definition. This
will bring up the Simulation Description window shown in
Figure 5-14.
Use the drop-down list boxes to select a Simulation Type of
Network Model and a Fluid Type of Gas.

Click the button to continue.

 After leaving the Simulation Definition window, you will want to
check Input Dimensions. From the the toolbar select General/Input
Units of Measurement. This will bring up the Input Dimensions
window shown in Figure 5-15.
For this problem, the flowrate basis will be Gas Volume units
of MM ft3 /day.
Use the Pipe Length drop-down list box to change the default
units to miles (mi) as shown in Figure 5-15.

Click the button to continue.

The next step is to begin entering the nodes _ sources, sinks, and
junctions _ required for the problem. For this simulation, you will
lay down two sources, one sink, and one junction, in that order.
To select the nodes:
Click one of the node icons from the toolbar.

 Move the cursor to the location on the main window where the
node is to be located and click again. The node will appear in
the main flowsheet area of the screen.
Repeat this step for each of the nodes in the flowsheet until the
entire system has been constructed as shown in Figure 5-16.

If you have added the nodes in the stated order of

sources, sink, followed by the junction, the sources will be
labeled S001 and S002, the sink, D001, and the junction, J004.

Tip:For very large systems, multiple nodes may be placed by

holding down the Shift key and clicking on each desired location
for a given node.

Once a node has been placed, it may be moved by

simply clicking on the node with the left mouse button,
holding it down, and dragging the node to a new location.
All of the source and sink nodes placed on the screen should be
bordered in red indicating that user input is required for that node.
After all of the nodes have been placed and named as shown in
Figure 5-16, the next step is to connect the nodes into a logical flow
network.

 To connect two nodes:
Click on a source or junction (From node) with the left
mouse button. A red square will appear on the node, and the
border of the node will turn green to indicate that the node has
been selected.
Next, click inside the square with the left mouse button and,
while holding the mouse button down, drag the cursor to
another junction or sink (To node).
Once a square has been selected and the cursor begins to move, all
of the connection squares in the available junction and sink nodes
will turn blue indicating a valid location to which you can connect
the link.
For this simulation, you must connect S001 to J004, S002 to J004,
followed by J004 to D003. The flow diagram should now show the
structure shown in Figure 5-17.

The next step is to enter the data for each of the sources and sinks.

 To enter the data for the source S001:
Double-click on the node S001, and enter the following
information:

Select the PVT Property Set as 1 in the Properties field. The

window should appear as shown in Figure 5-18.

Click the button to return to the main window. The source is

now bordered in blue, indicating that all required data have
been entered.
To enter the data for the source S002:
Double-click on the node S002. The same window should
appear as shown in Figure 5-18.

 Enter the following information:

Select the PVT Property Set as 2 in the Properties field.

Click the button to return to the main window. The second
source is now bordered in blue, indicating that all required data
have been entered.
To enter the data for the sink D003:
Double-click on the node D003. The window should appear as
shown in Figure 5-19.
Enter the following information:

Click the button to return to the main window. The sink is

now bordered in blue, indicating that all required data have
been entered.
Lastly, you must enter the data for each of the links on the
flowsheet. Lets start with link L001 between source S001 and
junction J004.
To enter the data for this link:
Double-click on the link L001. This brings up the Link <L001>
Device Data window as shown in Figure 5-20.

Click the pipe button on the device palette to add this

device to the link. This automatically brings up the Pipe data
entry window.
Enter the data given in Table 5-3.

The completed Pipe window for device E001 should appear as

shown in Figure 5-21.

Click the button to return to the Link <L001> Device Data

window.
Then click the button to return to the main window.
Next, you must add devices to link L002 connecting source
S002 and junction J004.
Double-click on the link L002. This brings up the Link <L002>
Device Data window.
Click the pipe button on the device palette to add this device to
the link. This automatically brings up the Pipe data entry
window.
Enter the data given in Table 5-4 for the pipe device E002 on
link L002. The completed Pipe window for device E002
should appear the same as shown in Figure 5-21.

 Click to return to the Link <L002> Device Data window.
Next, you must add a compressor to this link by clicking the
compressor button on the device palette. This automatically
adds this new device after the currently selected device (i.e., the
pipe E002) and brings up the Compressor data entry window
for device E003.
Enter the data given in Table 5-4 for the compressor device
E003 on link L002. The completed Compressor window should
appear as shown in Figure 5-22.
Tip:To copy or delete a device previously added to a link, highlight
that device, then click on the COPY then PASTE or DELETE
buttons on the left palette in the Link Device Data window.

Click K to return to the Link <002> Device Data window.

Then, click again to return to the main window.
Using the data given in Table 5-5, repeat the above steps for
link L003 connecting junction J004 to sink D003. The main
window will now appear as shown in Figure 5-23.

Lets save the data entered so far.

Click the button on the toolbar, or select the File/Save
menu option.

Now, you must define the design constraints, coefficients for the
objective function, decision variables, and optimization parameters.
Click the button on the toolbar, or
select the Special Features/NETOPT Optimization Data menu
option. This brings up the Network Optimization Data window.
Check the Enable Network Optimization check box.
In the Objective data entry field, select the Minimize Objective
Function radio button as shown in Figure 5-24.

Now, you must define the objective parameters by clicking on

the button to bring up the Network
Optimization Objective Parameters window.
As discussed previously, the overall capital cost is a linear function
of the ID of the two pipeline segments and compressor power:

There are therefore four objective parameters for this optimization

problem as shown in Table 5-6.

To enter the first objective parameter:

In the Network Optimization Objective Parameters window,
click the button. This brings up the Define Objective
Parameter window.
Select the Link Name radio button in the Node/Device/
Calculator Name field.
Select link L003 from the Link Name drop-down list box.

 Select Pipe from the Device Type drop-down list box. By
default, PIPEPHASE will display the correct device name,
E004.
Select Inside Diameter from the Parameter drop-down list box.
Type in 140 in the Correlation Coefficient data entry field as
shown in Figure 5-25.

Repeat for the other three objective parameters using the data
in Table 5-6.
Tip:For the Compressor objective parameters, select Set Power
from the Parameters drop-down list box in the Define Objective
Parameter window.
The completed Network Optimization Objective Parameters
window is shown in Figure 5-26.

Click the button to return to the Network Optimization Data

window.
Next you must define the decision variables.
There are four decision variables for this optimization problem as
shown in Table 5-7 below.

In the Network Optimization Data window, click the

button. This brings up the Define Decision Variable window.
Select the Link Name radio button in the Node/Device Name
field.
Select link L003 from the Link Name drop-down list box.
Select Pipe from the Device Type drop-down list box. By
default, PIPEPHASE will display the correct device name,
E004.
Select Inside Diameter from the Parameter drop-down list box.
Click the button. This brings up the Optimizer Variable
Limits window as shown in Figure 5-27.

 In the Variable Lower Limit field, enter a value of 24 for
Mechanical Limit (Absolute Value).
In the Variable Upper Limit field, enter a value of 48 for
Mechanical Limit (Absolute Value).

Click the button to return to the Define Decision Variable

window.
Then, click the again to return to the Network Optimization
Data window.
Repeat for the other three decision variables using the data in
Table 5-7 above.
Tip:For the Compressor decision variables, select Available Power
from the Parameters drop-down list box in the Define Decision
Variable window.
The Network Optimization Data window should now appear as
shown in Figure 5-28.

Next you must define the constraints by clicking the

button to bring up the Network Optimization Constraints
window

In the Network Optimization Constraints window, click the

button. This brings up the Define Constraint window.
Select the Node Type radio button in the
Name field.
Select from the Node Type drop-down list box. By default,
PIPEPHASE will display D003 as the Node Name.
Select Pressure from the Parameter drop-down list box.
Click the button. This brings up the Optimizer Variable
Limits window.
In the Variable Lower Limit field, enter a value of 900 for
Mechanical Limit (Absolute Value).
Click the button to return to the Define Constraint window.

 Then click again to return to the Network Optimization Data
window.
Repeat for the other two constraints using the data in Table 5-8.
Tip:For the Compressor constraints, select from the
Parameter drop-down list box in the Define Constraint window.
The Network Optimization Constraints window should now appear
as shown in Figure 5-29.

Finally, you must specify the optimization options. Click to

return to the Network Optimization Data window.
On the Network Optimization Data window, click the
button. This brings up the Optimization
Options window. For this problem, you must increase the
number of optimizer iterations from the default value of 10.
In the Maximum Number of Optimizer Cycles field, select the
Specified Number radio button and enter a value of 30 in the
corresponding data entry field as shown in Figure 5-30.

Click the button to return to the Network Optimization Data

window shown in Figure 5-31.

Then, click the button again to return to the main

PIPEPHASE window.

 Select the menu option to save the simulation date
entered so far.

Before you can run the simulation, you must specify the print
options for the output report and save the simulation.
Select the menu option from the main
PIPEPHASE window. This brings up the Print Options window
as shown in Figure 5-32.

You must turn off the input reprint, select that all device
details be printed (the FULL option), and generate a database.
By default, Ability to Generate Excel Database is set to FULL.
Select the NONE option from the Input Reprint drop-down list
box.
Select the FULL option from the Device Detail drop-down list
box. The completed Print Options window should appear as
shown in Figure 5-32.

Click to return to the main PIPEPHASE window.

 Select the menu option to save the simulation data
entered so far.
Now you are ready to run your simulation.

If you are running on a UNIX server, you must first define your run
remote settings.
See the section titled Run Remote in Chapter 3, Installing
PIPEPHASE for details.
Select the File/Remote Settings menu option to bring up the
Run Remote Settings window. By default, the Run Calculations
on Remote Computer check box is enabled.
Select the appropriate option from the Local Operating System
Version drop-down list box.
Supply a Remote Machine Name, Remote User ID, and
Remote User Directory for your remote host machine.
Select TELNET or RSH for remote execution and supply the
appropriate commands for running PIPEPHASE.
Click the button on the Run Remote Settings window to
return to the main PIPEPHASE window.
Click the button on the toolbar or select the File/Run menu
option to run PIPEPHASE. This brings up the Run Simulation
and View Results window.
Click the button in the Run Simulation field.
The status of the simulation run is shown in the Run Status window,
which may be scrolled and resized. If you have successfully entered
all the data correctly, your Run Simulation and View Results
window will appear as shown in Figure 5-33.

Select the Optimized Summary option from the Report drop-

down list box, then click the button to view the results of
the optimization as shown in Figure 5-34.

 Table 5-9 summarizes the optimal solution for this simulation.

PIPEPHASE includes a powerful utility called the Results Access

System (RAS) that allows you to plot the results of your
optimization run.
First, find and launch the RAS program. The main
PIPEPHASE RAS window appears as shown in Figure 5-35.

Under Windows 3.1, double-click on the

PIPEPHASE RAS icon located in the SIMSCI group
window.

Next, select the menu option.

Select the TUTORIAL.RAS database file.

 Click the button beside the Plot Report drop-down list
box to define your plot. This brings up the RAS Plot Options
window.
Click the button to bring up the RAS Plot Data Options
window.
Next you must plot the pressure along link L003 (from junction
J004 to sink D003) for the base case and the optimized case.
By default, the Initial Case option is selected in the Simulation
drop-down list box.
Select L003 from the Link Name drop-down list box.
Check the All Devices in the Link check box.
By default, PIPEPHASE RAS will select Pressure as the State
Variable to plot on the y-axis.
Click the button to add this to the list of variables
to plot.
Repeat the above steps for link L003 for the Optimized Case.
Click the button to return to the RAS Plot Options
window.
Fill in the Title, X-Axis Label, and Y-Axis Label fields as
shown in Figure 5-36.

Click the View button to view the plot shown in Figure 5-37.



You can save this plot or export the data as a comma-delimited or

tab-delimited ASCII file using the File menu options on the Plot
window.
Select File/Close to close the Plot window.
Click OK on the RAS Plot Options window to return to the
main RAS window.

PIPEPHASE has extended its capability to generate and view

reports on the results of an optimization run in an Excel format.
Procedure to invoke Excel report has been listed below:
Select option in View Output Menu or
click icon in the toolbar to generate an Excel
report for a currently opened simulation. Excel Reports dialog
box (see figure 6-38) will pop up on selecting this option.
In the Excel Reports dialog box, different types of Summary
and Line reports available to be generated will be listed. You
can observe some of the options have been already selected.
The selected options are called Set default Print Options.
Select all the options listed under Run Options.

Click to execute the options checked under

Run Options. This will generate Excel Reports for the
simulation, which is currently opened.

Uncheck the Run Simulation option under Run Options, if

you have already run the simulation through Run Simulation and
View Results dialog box. Excel Reports dialog box can be
viewed by clicking Excel button present in Run Simulation and
View Results dialog box.

The analysis done in the first half of this tutorial is based on capital
expenditures alone. Over the lifetime of a pipeline, the operating
costs, primarily in terms of fuel consumed in running the
compressors, are significant. Table 5-10 shows the compressor
operating costs.

 First, change the objective function to include these new costs and
rerun the optimization.
Click the button on the toolbar or select the General/
Optimization Data menu option. This brings up the Network
Optimization Data window.
Click the button to bring up the Network
Optimization Objective Parameters window.
Highlight the Compressor E005 Available Power parameter,
then click the button.
Change the value of the Correlation Coefficient from
4.660e-003 to 6.600e-004 as shown in Figure 5-39.

Click the button to return to the Network Optimization

Objective Parameters window.
Repeat for the Correlation Coefficient for the Compressor E003
Available Power parameter.
Click the button until you return to the main PIPEPHASE
window.
Then run the modified problem by clicking the Run on the
toolbar or on the File/Run menu option.
Then click the button on the Run Simulation and View
Results window.
Select the Optimized Summary option from the Reports drop-
down list box.

 Table 5-11 compares the optimal solution for the modified problem
to that of the original problem. The operating costs involved in
running the pipeline system for 10 years based on the original
solution are also included.

The results of these two runs show that by taking the operating costs
into consideration:
Smaller compressors on both sections of pipeline are needed.
For an increased capital expenditure of $222MM in laying
down slightly larger pipes on Link L003, operating costs over
the lifetime of the pipeline are reduced nearly 65% from $389.9
MM to $137.3 MM.
Overall costs are reduced 0.3% from $7,964 MM to $7,933
MM.