Question

a 100,000 barrel per day (bpd) fractionation tower costs $1.2 million in 2001 when the chemical engineering plant cost index value was 394.3. how much would a 300,000 bpd plant cost when the index value is 575.8, provided the exponent in the cost-capacity equation is 0.67? (section 11.4)

Answer 1

The estimated cost to build a 300,000 bpd fractionation tower when the index value is 575.8 using the cost-capacity equation with an exponent of 0.67 is approximately $3.65 million.

Step-by-step explanation:

The cost of a 300,000 bpd fractionation tower can be estimated using the cost-capacity equation and accounting for the changes in the Chemical Engineering Plant Cost Index (CEPCI). The cost-capacity equation is usually given as:

Costnew = Costbase × (Capacitynew/Capacitybase)exponent × (Indexnew/Indexbase)

Using the provided data:

• Costbase = $1.2 million
• Capacitybase = 100,000 bpd
• Capacitynew = 300,000 bpd
• Indexbase = 394.3
• Indexnew = 575.8
• Exponent = 0.67

Plugging the values into the equation:

Costnew = $1.2 million × (300,000 / 100,000)0.67 × (575.8 / 394.3)

Costnew = $1.2 million × 30.67 × (575.8 / 394.3)

Costnew = $1.2 million × 2.0801 × 1.4601 = $3.6467 million approximately

The estimated cost to build a 300,000 bpd fractionation tower when the index value is 575.8, with an exponent of 0.67 in the cost-capacity equation, is approximately $3.65 million.