Pipes can be used to transport materials from one inventory to another. For example, you can easily use pipes to transport the outputs from a distillation column to a plastic chest for storage or to another processing unit. When placing pipes, they will appear in the direction in which you are facing. Pipes can also be used to connect the outputs from multiple sources into a single flow. Pipes are a great way to automate multi-step processing in complex flow networks. You can add pipes by clicking on the ground or a neighboring block, but you have to hold 'Shift' if you want to add a pipe by clicking on an existing pipe. The pipe's flow direction will be opposite of the way you are facing. If you are looking up, the pipe will come down at you. Pipes must be faced to flow toward a pump on the source side of a flow network and away from the pump on the target side of the flow network.
Connecting more than two pipes to one another at the same pipe junction causes unpredictable flow network behavior. If you want multiple pipes coming into one block, connect them into a plastic chest or a chest.
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