Ppe-final-requirement.docx

CHAPTER I COMPANY PROFILE

Dana Gas is the Middle East’s first and largest regional private sector natural gas company. Dana gas is currently the 6th largest gas producer in Egypt, and operates in the Nile Delta through the El Wastani Petroleum Compnay (WASCO), Dana Gas’ joint venture company with the Egyptian Batural Gas Holding Company (EGAS), where almost all of its 695 employees are Egyptians. In 2013, the production in Egypt averaged 36,700 BOEPD, a significant year on year increase of 14%. The company to 41,500 BOEPD, in Egypt in the last five years. El Wastani Petroleum Company also known as WASCO is engaged in exploration and production of oil and gas products. They are also the leading company in petroleum exploration and production field, working to maximize production and increase reserves in Egypt. An LPG plant in Damietta, Egypt, operated by El-Wastani Petroleum Co. (WASCO), contains a turboexpander LPG recovery unit. Due to the increased demand for ethane and LPG in Egypt, a retrofit was recommended for the WASCO plant to increase LPG recovery and produce ethane as a new product. Vast reserves of natural gas exist in Egypt, with strong potential for additional discoveries. The western desert regions, the Nile Delta, and the Mediterranean Sea have shown great promise for further increasing Egypt’s gas production in the future. However, low levels of NGL recovery in domestic gas processing plants force Egyptian petrochemical companies to import their feedstocks at high prices due to high transportation costs. However, domestic gas processing companies could provide a large percentage of those feedstocks if NGL recovery levels are increased. WASCO owns and operates a network of wells and a gas gathering system in the Nile Delta area. The gas stream is directed to a central processing facility (CPF) located at Damietta. The WASCO CPF was originally designed to process 160 MMscfd of feed gas (with a molecular weight of 19.13) and 4 Mbpd as raw condensate (with a

condensate/gas ratio of 25 bbl/MMscf) to produce 245 tpd of LPG product for the local market, 5 Mbpd of stabilized condensate and 153 MMscfd of sales gas for the Egyptian national gas grid. In 2014, plant processing capacity increased to 200 MMscfd of feed gas.

CHAPTER II PROCESS FLOW DIAGRAM

The process starts when the feed first enter a heat exchanger to decrease the temperature for feed conditioning. It will be expand in an expander and then subjected to the absorber. From the absorber, the overhead vapor is compressed and the final product from it is the sales gas. The feed gas is scrubbed by using a light hydrocarbon reflux coming from the top of the primary deethanizer. The bottom product of the deethanizer is sent to the LPG column so the LPG will be separated from the heavier hydrocarbons. The overhead product is the LPG and the bottom product is C3+ which will be subjected to the fractionating system. The feed enters deethanizer column near the top. The overhead product of the deethanizer is ethane and the bottom product will be subjected to the debutanizer.The debutanizer is prior to the depropanizer so that the next column will be reduced. The fractionation at the debutanizer results to overhead products which is butane and propane and bottom product which is the natural gasoline (C5+). The propane and butane will enter the depropanizer and will yield propane at the overhead and butane at the bottom. The

butane will be subjected to the butane splitter to separate the iso-butane from n-butane. Every product is subjected to their respective storage and are ready to market. The bottom product of the deethanizer column will head to the LPG column. The column operates with 4 bar pressure and 17.46˚C temperature at the overhead. The overhead product will be condensed in the condenser with chilled water and then sent to the reflux drum. The bottom product of the reflux drum will be pumped back to the LPG column and the overhead which is the LPG will be sent to the storage. The reflux drum has a reflux ratio of 0.9. The bottom part of the column operates at 10 bar and 209.6˚C and the bottom product will be sent to the second deethanizer column. The bottom product will also be subjected to the reboiler on its way through the deethanizer column.

CHAPTER III MODIFIED PROCESS FLOW DIAGRAM

The recovery of valuable heavier hydrocarbons from natural gas is accomplished in a series of distillation columns. The first column is a cryogenic high-pressure column in which the methane is taken overhead and the ethane and heavier hydrocarbons are produced as a bottoms product called “natural gas liquid” (NGL). This demethanizer column uses compression and expansion to achieve the required low temperatures (190 K) for achieving liquids at the operating pressure of 25 atm. The column has a complex configuration of side-reboilers that use the ambient-temperature natural-gas feed stream to partially reboil the column and precool the feed. Additional feed precooling occurs using the cold methane gas product stream from the top of the column and using an external refrigerant. Finally a portion of the cold feed is expanded in a turbine and fed near the top of the column while the remainder is flashed and fed to the top tray as reflux.

Here are some reasons why the researchers added a demethanizer unit in the process: 

A demethanizer tower was added where the methane-free NGL product is recovered as a bottom product.



A small portion of residue gas was withdrawn, condensed, subcooled and then flashed in the demethanizer top tray to perform as a reflux.



A new three-pass heat exchanger was added to provide a cold reflux stream to the demethanizer tower.



A new demethanizer pump was added to pump NGL through the cold box and the gas/liquid exchanger to provide bottom heat for the demethanizer tower.



A new gas/liquid exchanger was added to transfer heat from hot sales gas to NGL from the demethanizer tower; this exchanger is used as a side reboiler.



Ethane recovery schemes are typically more highly heat integrated, utilizing inlet gas to provide the reboiling for the demethanizer with a bottom reboiler and one or more side reboilers.



The demethanizer is operated at high a pressure.



Although the demethanizer can be operated at pressures in excess of 500 psig, efficient heat integration via reboilers, especially when processing cool inlet gas, and separation efficiency come into question.



When operating a demethanizer at a normal pressure of 500 psig or greater, startup and JT mode operation can prove to be difficult



The demethanizer must operate at elevated pressures to counter the loss of expander boost.

CHAPTER iV ECONOMIC ANALYSIS

Total Capital Investment Equipment Cost Equipment

Quantity

Total cost ($)

1

789,625.03

Heat exchanger

1

734,135.00

Pump

7

285,075.0

Heat absorber column

1

283,747.6

Deethanizer column

1

27,419.5

Demethanizer column

1

29,3847.7

Trays

150

630,000

Reboiler

6

274,734.00

Condenser

5

211,400

Reflux drum

5

653,270.04

Column

5

137,097.5

Natural gasoline storage

1

470,730.90

Propane storage

1

20,874.20

I-butane storage

1

20,874.20

N-butane storage

1

20,874.20

Ethane storage

1

20,874.20

LPG storage

1

20,874.20

Total:

4,601,605.57

Heat exchanger expander

CAPEX Capital Expenditure or CAPEX is money invested to acquire non-consumable assets. Fixed Capital Cost

[USD ($)]

Equipment Purchased Delivered

25 680 000

Installation of Equipment

12 070 000

Instrumentation and Controls 14 250 000 Installed Pipes Installation

17 480 000

Building and its services

13 630 000

Electrical System Installation

9 820 000

Services Facilities

18 000 000

Engineering and Supervisions

10 272 000

Construction Expenses

14 540 000

Yard Improvement

10 272 000

Contactor Fees

5 136 000

Legal Expenses

3 030 000

Contingency

12 310 000

Land Cost

3 200 000

Fire Fighting

3 523 000

Offloading Facility

4 587 000

Taxation

1 120 000

Storages

17 976 000

Total

196 860 000

OPEX Operating expenditure or OPEX is an ongoing cost for running a plant. Expenditures

Quantity

Cost ($)

Raw materials

15,568,622.10

Operating labor

3,500,000.00

Maintenance, repairs and

25% capital

79047500

contingency

expenditure

Laboratory testing

27% of labor

945,000.00

Office supply/expenses

8% capital

25295200

expenditure Legal fees

10% of labor

350,000.00

Insurance

8% capital

25295200

expenditure Supervision

35% of labor

1,225,000.00

Local taxes

8% of capital

25295200

expenditure Miscellaneous/maintenance

8% capital

25295200

expenditure Plant overheads

50% of labor

1,750,000.00

Electricity

1,470,000.00

Cooling water

300,000

Steam for heating

350,000 Total:

$205,686,922.1

Total Annual Production Product

Production per year

Production per year ($)

C2

18,967,122.07

2,807,134.066

C3

108,364,867.9

41,937,203.87

I-c4

25,197,773.97

14,488,720.03

N-c4

81,015,200.67

46,097,649.18

C5+

423,217.5068

392,322.6288

LPG

490,623,188.8

284,561,449.5

TOTAL:

390,284, 479.3

FOREX: 1$= Php 52.50 Total Project Cost = Capital Expenditure = $196860000 Total Annual Income Income Tax: Philippine’s income tax for Local Industrial Company is 30% Net Income = Taxable income x 0.70 = 390,284,479.3 x 0.70 = $273,199,135.5 Net cash inflows = net income – operating cost = $273,199,135.5 - $205,686,922.1 = $67,512,213.38

Economic Indicators Payback Period The payback period is the length of time required to recover the cost of an investment. The payback period of a given investment or project is an important

determinant of whether to undertake the position or project, as longer payback periods are typically not desirable for investment positions.

Payback Period = TCI / net cash inflows = $402 546 922.1/$67,512,213.38 = 5.96 years Return on Investment A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. ROI measures the amount of return on an investment relative to the investment’s cost.

Rate of Investment =

𝑔𝑎𝑖𝑛 𝑜𝑓 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡−𝑐𝑜𝑠𝑡 𝑜𝑓 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡

$273,199,135.5−$196860000

=

$196860000

= 0.3878 or 38.78% Rate of Return A rate of return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.

𝑛𝑒𝑡 𝑐𝑎𝑠ℎ 𝑖𝑛𝑓𝑙𝑜𝑤𝑠

Rate of Return = 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 𝑒𝑥𝑝𝑒𝑛𝑑𝑖𝑡𝑢𝑟𝑒𝑠 =

$67,512,213.38 $196860000

= 0.3429 or 34.29% Net Present Value Net Present Value(NPV) is a formula used to determine the present value of an investment by the discounted sum of all cash flows received from the project.

NPV=

67512213.38 (1.10)1

+

67512213.38 (1.10)2

+

67512213.38 (1.10)3

+

67512213.38

NPV = $17,144,632.4 Overall efficiency = =

𝑚𝑎𝑠𝑠 𝑜𝑢𝑡 𝑚𝑎𝑠𝑠 𝑖𝑛

× 100

16022.8119𝑘𝑔/𝑑𝑎𝑦 20000𝑘𝑔/𝑑𝑎𝑦

× 100

= 0.8011 or 80.11%

(1.10)4

– 196,860,000

Batangas State University College of Engineering, Architecture and Fine Arts Petroleum Engineering Department

PetE 521 – Process Plant Engineering Final Requirement

El Wastani Petroleum Company

Submitted by: Anico, Angelo Miguel A. Pabico, Hannah R.

Submitted to: Engr. Marvin A. Atienza Instructor

May 24, 2018