Coal slurry pipelines: impact on coal markets. [Contains description of 11 proposed slurry pipelines]

Technical Report · Mon Apr 01 00:00:00 EST 1985

OSTI ID:5801534

Hong, B D; Hickman, J G; Schnapp, R M

This analysis indicates that: Coal slurry pipelines could be competitive with railroads, if the projected pipeline and rail rates actually prevailed; coal users could realize savings of between $200 million and $1 billion in 1995, if the four coal slurry pipelines analyzed were built and operated at the estimated rates; the railroads could be adversely affected by coal slurry pipeline operations (about 8% less revenues with between 44 and 48 million tons of coal carriage lost), but railroad revenues from hauling coal in 1995 would still be between about one-half and two-thirds greater than those of 1984; and only minor shifts in the regional coal production pattern would occur as a result of coal slurry pipeline operations. This analysis has qualifications and limitations just as any other analysis. The coal pipeline rates used in this analysis may not necessarily be the actual rates that would prevail. This analysis considered neither the costs associated with retrofitting existing power plants to burn coal slurry nor other possible benefits of burning coal slurry. Rail rates, reflecting rail costs, were assumed to rise at slow but steady rate in the future; the potential for the railroads to lower their rates to overcome competition from coal pipelines was not considered. It is important to note that neither the grant of federal eminent domain for coal pipelines nor the potential transportation cost savings from coal pipeline operation can guarantee actual construction of coal pipelines. Eminent domain, however, would certainly remove the barriers to market entry that prevent competition. Actual construction of coal pipelines will depend largely on whether electric utility operators perceive their potential cost savings to be sufficiently large to warrant the risks associated with coal pipelines. 4 figs., 12 tabs.

• Research Organization: USDOE Energy Information Administration, Washington, DC. Office of Coal, Nuclear, Electric and Alternate Fuels
• OSTI ID: 5801534
• Report Number(s): DOE/EIA-0468; ON: DE85010469
• Country of Publication: United States
• Language: English

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