Investment Costs for the New Facilities
There are two costs which make up the overall investment outlay. These are:
• Capital cost of the plant
• Associated costs
The Capital Cost
For the screening study, a capital cost of plant estimated on experience and
factors is used. This and other types of estimates are described later in this
chapter. A set of capacity cost data for plants of this size are listed below: (Note
that these numbers are pure fiction and bear no relationship to any company’s cost
data.)
Type of unit
Capital cost factor
Light end units
412 $/BPD
Catalytic reformer
3,120 $/BPD
Hydrotreater (naphtha)
780 $/BPD
Hydrotreater (diesel)
1,200 $/BPD
Wash plants
170 $/BPD
Naphtha splitters
360 $/BPD
Thermal crackers
2,000 $/BPD
Fluid catalytic crackers
3,960 $/BPD
Vacuum distillation units
700 $/BPD
Associated Costs
To complete the full investment picture, the following costs must be included as
part of the investment. These are:
• Cost of first catalyst and chemical inventory.
• Cost of licensing fees for proprietary processes.
• Cost of additional utility and offsite facilities. This cost is included because
additional processing plants will either require additions to utilities and offsite
facilities or take up available spare capacity. This will entail at some future date
an expansion to these facilities which would not be necessary if this process
expansion had not occurred.
For the purpose of a screening study, a figure of 15 % of the capital cost is used
for these associated costs. In more definitive studies, this item would be developed
with more detail.
The capital cost of the process expansion considered here is as follows:
New naphtha hydrotreater
Capacity 13,500 BPSD at 780 $/bpsd = 10,530,000$
Petroleum Refinery Planning and Economics
709
There are two costs which make up the overall investment outlay. These are:
• Capital cost of the plant
• Associated costs
The Capital Cost
For the screening study, a capital cost of plant estimated on experience and
factors is used. This and other types of estimates are described later in this
chapter. A set of capacity cost data for plants of this size are listed below: (Note
that these numbers are pure fiction and bear no relationship to any company’s cost
data.)
Type of unit
Capital cost factor
Light end units
412 $/BPD
Catalytic reformer
3,120 $/BPD
Hydrotreater (naphtha)
780 $/BPD
Hydrotreater (diesel)
1,200 $/BPD
Wash plants
170 $/BPD
Naphtha splitters
360 $/BPD
Thermal crackers
2,000 $/BPD
Fluid catalytic crackers
3,960 $/BPD
Vacuum distillation units
700 $/BPD
Associated Costs
To complete the full investment picture, the following costs must be included as
part of the investment. These are:
• Cost of first catalyst and chemical inventory.
• Cost of licensing fees for proprietary processes.
• Cost of additional utility and offsite facilities. This cost is included because
additional processing plants will either require additions to utilities and offsite
facilities or take up available spare capacity. This will entail at some future date
an expansion to these facilities which would not be necessary if this process
expansion had not occurred.
For the purpose of a screening study, a figure of 15 % of the capital cost is used
for these associated costs. In more definitive studies, this item would be developed
with more detail.
The capital cost of the process expansion considered here is as follows:
New naphtha hydrotreater
Capacity 13,500 BPSD at 780 $/bpsd = 10,530,000$
Petroleum Refinery Planning and Economics
709