It is of often important to accurately predict the flow-induced vibration or dynamic instability of a pipeline conveying internal high speed flow in advance, which requires a very accurate solution method. In this study, first the dynamic equations for the axial and transverse vibrations of a pipeline are reduced from a set of pipe-dynamic equations derived in the previous study and then the spectral element model is formulated. The accuracy of the spectral element method (SEM) is then verified by comparing its results with the results obtained by finite element method (FEM). It is shown that the present spectral element model provides very accurate solutions by using an extremely small number of degrees-of-freedom when compared with FEM. The dynamics of a sample pipeline is investigated with varying the axial tension and the speed of internal flow.