A viable and effective route to become carbon neutral and avert climate change is through carbon capture and storage (CCS). Huge volumes of carbon dioxide with different purity profiles must be transported primarily through pipelines in order to execute CCS on an extensive basis. The cost-optimal design of a medium-sized pipeline equipped with a booster station in the Middle East was determined in this study by the development and application of a thorough optimization-based model. The effects on density, pressure drop, and cost have been examined for a variety of impurities, including argon (Ar), methane (CH4), hydrogen (H2), nitrogen (N2), water (H2O), hydrogen sulfide (H2S), oxygen (O2), and sulfur dioxide (SO2). The results demonstrate that all impurities have raised the levelized cost of transportation (LCOT) due to a loss in available capacity and/or an increase in pressure drop. For the purity profiles that were examined, the cost and power penalties for the presence of 4% Ar and 4% H2 could be as high as 3.9% and 60.3%, respectively. In order to make up for the losses, operators ought to impose a minimum fee (such as US ¢27/ton CO2 for 4% Ar). This work emphasizes how crucial it is to use an optimization model in order to comprehend the influence of impurities and determine the cost-optimal design.