AHP Method: Application in Pipeline Projects in Brazil

Abstract

This article considers that the most cost-effective way to transport products of fossil fuels, liquids or gases, is by a pipeline system which provides high operational reliability, lower power consumption and less environmental impact consequently. It becomes more and more necessary implementing new pipeline projects in Brazil. In the early seventies, discussions have started regarding the pressure for reduction of costs and pursuit of sustainable development, linked to the Triple Bottom Line, which uses economic, environmental and social dimensions. So far, the decisions in several sectors of the oil industry have been taken based on just one criteria, usually economical. This study proposes the establishment of a multicriteria analysis to be used in future pipeline deployments in Brazil, aiming to support the decision makers by supplying them quantifiable and unquantifiable criteria. For the development of this analysis, it will be used the Analytic Hierarchy Process (AHP) in which the various relevant criteria are represented through relative weigh. A project of a new pipeline will be used as a case study to demonstrate the application of the proposed model. The organizations can use the result of the analysis as an input to decision-making on future ductwork ventures in Brazil, especially in terms of environmental and social dimensions.