1.The Tariff is based on the Costs of Service.

2. The income must cover the costs of service and a profitability.

3. Incomes depend on tariff and projected volumes.

1.The tariff is based on the Costs of Service.

Source: Own elaboration.

2.The income must cover the Costs of Service and a profitability in accordance
with the risks.

3. Incomes depend on tariff and projected volumes.

PARAMETERS DESIGN

EFFECT OF DEMAND ON THE TARIFF

Incomes depend on the rate and projected volumes defining a competitiveness for the pipeline.

Below the Minimum Volume threshold, the oil pipeline is no longer sustainable, generating very high tariffs for users.

A Minimum Volume is required for the oil pipeline to be viable.

CAPEX – DESIGN

Design of the liquid transport system, using the modeling software, the procedure is as follows:

Source: Own elaboration, Pipeline Studio software.

CAPEX – COSTS CALCULATE

• Efficient investment costs.
• Unit cost structures (BAREMOS) are developed for each of the components of the transportation
  system: pipelines, pumping stations, valves, etc.

Source: Own elaboration

MINIMUM TRANSPORTATION TARIFF

• Cost Efficient – Minimum Cost
  • An efficient system is considered to be one that uses the lower cost infrastructure.
  • For this purpose, hydraulic designs are developed for the various possible scenarios of pipeline diameters, capacities and pumping stations, which satisfy the demand to be transported.

Source: Own elaboration.

INVESTMENT CAPEX

• General example of a CAPEX distribution

Source: Own elaboration.

OIL PIPELINE TARIFFS
EXPERIENCES IN SOME COUNTRIES

GENERAL CRITERIA FOR TARIFF
CALCULATIONS

• General criteria in all tariff calculation procedures.

• General criteria in all tariff calculation procedures.

Source: Own elaboration.

OIL PIPELINE TARIFFS IN BOLIVIA –
POSTAGE STAMP TARIFF

OIL PIPELINE TARIFFS IN COLOMBIA – ZONE
GATE TARIFF

Source: Bicentenario.

OIL PIPELINE TARIFFS IN SOUTH AFRICA –
DISTANCE TARIFF