Abstract: In the process of cogeneration of heat and power, many factors affect the energy efficiency, such as the difficulty to monitor the steam transmission process, the complex change of flow rate and pressure, and the requirement of experience of personnel for the operation and maintenance of pipe network. This paper develops a dynamic simulation model of steam heating pipe network. The model presumes a single-phase compressible steam pipe network composed of nodes and pipelines. The mass equation, momentum equation and energy equation of the pipe network are used to establish the physical model of the pipe network. The implicit Euler algorithm and sparse matrix algorithm are used to solve the nonlinear differential equations obtained from the physical model. In addition, this paper constructed a simple pipe network as an example, and numerical simulation with Fluent was carried out to verify the algorithm. Finally, the actual pipe network model is established and compared with the actual operation data of a steam pipe network in an enterprise. The results show that the proposed model is not only accurate in calculation, but also valuable in practical engineering application.