costs in ulrich: scaled to ce plant cost index = 315 (mid 1982)
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Sulfur Capacity t/D10 100 1000
Cos
t (M
illio
n $1
999)
2
3
4
5
6789
20
30
101999 Cost BasisConstructed 1955-1975Alberta Claus Sulfur Plants
Slope=0.64
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Capacity, billion lb/year0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1
Cos
t, U
S$,
mill
ions
90
200
100
Polyethylene Plants - 1998 to 2001Joffre
BayportThailand
n=0.9
Fort Saskatchewan
n=0.6
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Costs in Ulrich: Scaled to CE Plant Cost Index = 315 (mid 1982)
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Woods: Recommend M&S for costs in Canada
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Location Cost Factors
Location Cost FactorUS Gulf Coast 1.0Canada 1.15Middle East 1.1Japan 0.9India – imported 1.8India - indigenous 0.65
Garrett, 1989
Cost increases by 10% for every 1000 miles from a major manufacturing centre
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Correcting Plant Costs
• Cost escalation with time– CE Index– M&S Index
• Currency exchange rates• Location cost
• Design changes?loccurr ff
BaseIndexCEtBaseCost cos
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Costing TerminologyFOB Cost = equipment purchase cost (Cp)
Bare Module cost = Cost of equipment plus installation expenses (CBM)
BM cost of process unit = Sum of bare module costs
Total module cost = Bare module cost + contingency + contractors fees
- recommend adding contingency to sum of modules
Battery Limit Costs = Cost of process equipment
Offsite Costs = Cost of supporting facilities
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Example: Typical process equipment
Guthrie, 1969
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Guthrie Storage Tank FactorsStorage tanks to 40,000 US gal.Storage Tank Cost, $ = [Base cost x Fm]Index
Adjustment Factors Installation (Prime contractorMaterial Fm work only)Carbon steel 1.00 Field installation (M&L) 1.47Aluminum 1.40 Bare module factor 1.96Rubber lined 1.48 L/M ratio 0.23Lead lined 1.55Stainless 3.20Glass lined 4.25
Note: Consider glass lining limited to 10,000 gal (max)
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