remember that the economic parameters used for each case are identical to enable a
proper comparison and analysis to be made.
Example Calculation
This scheme includes the addition of the following units into an existing oil
refinery:
• New naphtha hydrotreater (13,500 BPSD)
• New naphtha splitter (1,350 BPSD)
• Revamped debutanizer and new light ends units (3,830 BPSD)
• New thermal cracker (34,320 BPSD)
• New diesel hydrotreater (9,000 BPSD)
• New catalytic reformer (9,000 BPSD)
The capacity factored capital cost estimate used in the screening studies for this
scheme was 125.490 MM $. A subsequent estimate based on a more definitive
design and equipment definition (equipment factored estimate) gave a capital cost
figure of 119.216 MM $ for this configuration. This latter figure will be used as the
capital cost in this example calculation.
Net Investment Cost
This will consist of:
• The capital cost
• Associated costs
• Capitalized construction loan interest
Associated Costs
1. Paid up royalties. This is a once off licensing fee paid to the licensors of the
hydrotreater processes and the catalytic reformer process. There may also be a
running licensing fee for these processes, but this will be included into the
operating cost.
Paid up royalties = 2.026 MM $.
2. First catalyst inventory = 4.052 MM $. Note: noble metals on the catalysts are
normally recovered and thus carried out as a working capital except for recovery
losses which can be treated as expenses as they occur.
3. Cost of land = 1.0 MM $.
4. Cost of incremental utility/offsite facilities = 2.501 MM $.
5. Cost of increased product/feed inventory (only product inventory is
considered here as there is no change in crude oil throughput). Statutory requirements for this refinery location is a mandatory inventory of 14 days feed and
product.
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D.S.J. Jones and P.R. Pujado ´
proper comparison and analysis to be made.
Example Calculation
This scheme includes the addition of the following units into an existing oil
refinery:
• New naphtha hydrotreater (13,500 BPSD)
• New naphtha splitter (1,350 BPSD)
• Revamped debutanizer and new light ends units (3,830 BPSD)
• New thermal cracker (34,320 BPSD)
• New diesel hydrotreater (9,000 BPSD)
• New catalytic reformer (9,000 BPSD)
The capacity factored capital cost estimate used in the screening studies for this
scheme was 125.490 MM $. A subsequent estimate based on a more definitive
design and equipment definition (equipment factored estimate) gave a capital cost
figure of 119.216 MM $ for this configuration. This latter figure will be used as the
capital cost in this example calculation.
Net Investment Cost
This will consist of:
• The capital cost
• Associated costs
• Capitalized construction loan interest
Associated Costs
1. Paid up royalties. This is a once off licensing fee paid to the licensors of the
hydrotreater processes and the catalytic reformer process. There may also be a
running licensing fee for these processes, but this will be included into the
operating cost.
Paid up royalties = 2.026 MM $.
2. First catalyst inventory = 4.052 MM $. Note: noble metals on the catalysts are
normally recovered and thus carried out as a working capital except for recovery
losses which can be treated as expenses as they occur.
3. Cost of land = 1.0 MM $.
4. Cost of incremental utility/offsite facilities = 2.501 MM $.
5. Cost of increased product/feed inventory (only product inventory is
considered here as there is no change in crude oil throughput). Statutory requirements for this refinery location is a mandatory inventory of 14 days feed and
product.
734
D.S.J. Jones and P.R. Pujado ´