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International scientific-online conference
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ALCULATION OF EXPENSES AND INCOME IN THE PROCESS OF
NATURAL GAS DELIVERY
Mamadaminov M.X.
Khudayberganova S.Z.
Kalibekova A.G.
Tashkent State Technical University
https://doi.org/10.5281/zenodo.15429459
Abstract.
This study analyzes the expenses and income involved in the
process of delivering natural gas to consumers. Using the example of capital
expenditure calculations, the economic efficiency of installing new pipelines,
replacing outdated ones, project planning, and other necessary technical
measures is examined. The total costs for each type of activity are identified, and
the overall project cost is analyzed.
Keywords:
Natural gas, capital expenditure, economic analysis, pipeline
installation, income, depreciation, investment.
Introduction.
Efficient use of energy resources and their delivery to the
population is one of the key directions in the development of the modern
economy. In particular, the process of delivering natural gas to consumers
requires a substantial amount of financial and technical resources. It is
important to determine capital expenditures, conduct an economic analysis, and
evaluate the efficiency of this process.
This article analyzes the financial indicators of works carried out in the
natural gas delivery process—such as installing new pipelines, replacing
outdated ones, and other technical measures. Based on this analysis, the
economic feasibility of the projects is determined, and optimal investment
directions are proposed.
Analyzing the expenses and income in the natural gas delivery process and
calculating financial indicators is essential.
Table
1
Calculation of Capital Expenditures for Natural Gas Delivery to Consumers
Type of Expense
Duration Quantity
Unit
Cost
(USD)
Total
Cost
(USD)
Installation of new pipelines 1 year
10 km
50,000
500,000
Replacement
of
outdated
pipelines
1 year
4 km
50,000
200,000
Design and construction
1 year
1 project 150,000
150,000
Installation of compressor 1 year
2 units
50,000
100,000
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Type of Expense
Duration Quantity
Unit
Cost
(USD)
Total
Cost
(USD)
stations
Installation of monitoring and
control system
1 year
1 project 50,000
50,000
New equipment
1 year
10 units 5,000
50,000
Training
and
staff
development
1 year
10
persons
5,000
50,000
Total
1,075,000
The following indicators are taken into account to implement the project.
Capital expenditures are allocated for the construction of new infrastructure and
the replacement of outdated pipelines.
1.Installation of New Pipelines
:
Includes the cost of pipelines and installation works required for laying new
pipelines. The cost of installing 10 km of pipelines is calculated at USD 50,000
per kilometer.
2.Replacement of Outdated Pipelines
:
Includes the cost of replacing outdated pipelines and the associated installation
works. The cost of replacing 4 km of pipelines is calculated at USD 50,000 per
kilometer.
3.Design and Construction
:
Covers the overall design and construction works of the project.
4.Installation of Compressor Stations
:
Includes the cost of installing 2 compressor stations, each at a price of USD
50,000, to maintain and transmit gas pressure.
5.Installation of Monitoring and Control System
:
Covers the cost of installing a system for monitoring and controlling gas
delivery.
6.New Equipment
:
Involves the purchase of 10 new devices for measurement and monitoring, each
costing USD 5,000.
7.Training and Staff Development
:
Includes the cost of training workers in new technologies and systems.
Capital expenditures are primarily allocated for the construction of new
infrastructure and the renewal of outdated pipelines.
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Table 2
Calculation of Capital Expenditures
Type of Expense
Cost
(USD)
Installation of new pipelines
500,000
Replacement
of
outdated
pipelines
200,000
Design and construction
150,000
Technical equipment
100,000
Total
950,000
Operational expenditures
include maintenance, repair, and general
operational costs.
Table 3
Calculation of Operational Expenditures in Natural Gas Delivery
Type of Expense
Cost
(USD)
Technical maintenance 50,000
Repair costs
30,000
Labor force
100,000
Administrative
expenses
20,000
Total
210,000
Revenue from Natural Gas Sales and Fees for Additional Services
Revenue.
This includes proceeds from the sale of gas and payments
received for additional services.
Table 4
Revenue from Natural Gas Sales
Source
Revenue (USD/year)
Gas sales
1,200,000
Additional services 50,000
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Source
Revenue (USD/year)
Total
1,250,000
Financial Indicators
Financial indicators are used to determine the economic efficiency of a
project or process.
Annual Profit
:
Revenue – Operational Expenses
1,250,000 USD – 210,000 USD =
1,040,000 USD
Return on Investment (ROI)
:
(Annual Profit / Capital Expenditures) × 100
(1,040,000 USD / 950,000 USD) × 100 =
109.47%
Operating Margin
:
(Annual Profit / Revenue) × 100
(1,040,000 USD / 1,250,000 USD) × 100 =
83.2%
Development of Natural Gas Supply to Consumers in Uzbekistan:
Challenges and Proposals for Improvement.
As a result of studying the
development of the natural gas supply sector in Uzbekistan, including its current
issues and areas for improvement, the following conclusions and
recommendations have been formulated.
Uzbekistan ranks among the top ten countries in the world in terms of natural
gas production and export volumes. A large portion of natural gas produced in
Uzbekistan is exported; another significant portion is used as raw material and
fuel in various sectors of the national economy, while the remainder is
consumed by the population. Natural gas contributes over 10% to the total value
of exported goods and services.
Currently, 83.2% of the population in Uzbekistan has access to natural gas,
including 75.5% of the rural population. This is not only one of the highest rates
in Central Asia but also globally. In many developed countries, household
consumption of natural gas does not exceed 20%. Despite such a high rate of gas
coverage, there are still numerous rural areas in several regions that remain
unconnected. Ensuring gas supply to these rural settlements remains one of the
most urgent tasks today, especially considering that many of these areas lack
alternative fuel sources like wood or coal.
Among the challenges in the gas supply sector, the installation of household gas
meters and establishing full control over gas consumption are of critical
importance. Due to inefficiencies and uncontrolled losses, the gas input-output
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balance does not match. The difference between the volume of gas obtained and
the volume consumed indicates significant losses. Such unaccounted “losses” can
be minimized by timely data collection from gas meters and by improving
accounting systems and enhancing consumer control.
Stable natural gas supply to the population—especially during winter months
when shortages occur—can be ensured by addressing issues such as upgrading
old pipelines, adjusting their diameter and pressure capacity as necessary, and
renewing the infrastructure.
Another important issue is the widespread use of non-standard gas appliances
and burners by consumers, which leads to excessive gas wastage and causes
many accidents. Solving this issue is also vital for the gas supply sector.
Illegal connections to the gas networks and unauthorized usage, as well as the
inability to regularly and fully collect monthly meter readings in residential
areas, remain among the most pressing issues. To solve these problems, it is
necessary to:
promote efficient use of natural gas (reduce unnecessary losses),
standardize household gas appliances,
enhance control over gas consumption,
install unique numbered seals on consumer gas meters,
support financially unstable strategic enterprises (whose gas supply must
not be interrupted) through state-sponsored financial rehabilitation to improve
their solvency.
A detailed list of expenditures for laying new gas pipelines and replacing
outdated pipelines that do not meet modern standards has been compiled, and
the volume of associated costs has been calculated.
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Жила В.А. Автоматика и телемеханика систем газоснабжения.
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Бесекерский В.А., Попов Е.П. Теория систем автоматического
управления. - СПб.: Профессия, 2004. - 752 с.
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Воронов А.А., Ким Д.П., Лохин В.М. и др. Теория автоматического
управления. Учебник. 1, 2 ч. —М.: Высш.шк., 2012.
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www.uzneftgaz.uz
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www.energiya.uz
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www.uztransgaz.uz
