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

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

Costs in Ulrich: Scaled to CE Plant Cost Index = 315 (mid 1982)

Woods: Recommend M&S for costs in Canada

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

Correcting Plant Costs

• Cost escalation with time– CE Index– M&S Index

• Currency exchange rates• Location cost

• Design changes?loccurr ff

BaseIndexCEtBaseCost cos

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

Example: Typical process equipment

Guthrie, 1969

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)