The development of new pipeline systems through lands where the primary fuel source has been fuel oil or wood offers unique opportunities for the utilization of natural gas from the pipeline. The use of gas in place of oil can improve local economies; reduce heating and energy cost and lower the emissions produced from energy sources. A computer simulation has been built that can examine all the options for the use of gas from a pipeline system, considering direct replacement of fuel oil with a local gas pipeline system, the generation of electric power — locally or centralized at the pipeline, and the option of using cogeneration with the pipeline compressor stations. The simulation provides both graphic and tabular presentation of the results to show payback and the influence of changes in key parameters. The paper discusses this program and the possible applications to areas hitherto remote from the supply of natural gas for fuel.

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