Within the EU-funded GeoCapacity project an economic analysis computer tool is developed for the evaluation of carbon capture and storage (CCS) systems comprising of a set of multiple sources of CO2 and storage locations. As a part of that tool, an algorithm has been developed to create low-cost pipeline networks to connect sources of CO2 and storage reservoirs. The main features of the algorithm are: •Input parameters are the size and location of CO2 sources and storage reservoirs•The algorithm determines the trajectory, capacity and costs of the connecting pipes•If necessary junctions are created, i.e. connections are created between sources and pipelines and/or storage locations and pipelines•The algorithm has a step wise approach. The pipeline network is built-up by successively adding a pipe in each step, until all sources are connected to storage reservoirs•In each step all possible combinations are examined and the one with the lowest costs is added to the system•The pipe costs have a non linear relation with the flow rate•Cost ranges for pipeline network are presented reflecting uncertainties in data of supply of CO2 from sources as well in storage capacity of sinks. © 2009 Elsevier Ltd. All rights reserved.