Upload
didik-sudarsono
View
14
Download
0
Embed Size (px)
Citation preview
CHAPTER I
CAPITAL ESTIMATE
1.1. Cost Index
Most cost data which are available for immediate use in a preliminary or
predesign estimate are based on conditions at some time in the past. Because price
may changes considerably with time due to changes in economic conditions, some
method can be used for updating cost data applicable at a past date to costs that are
representative of conditions at a later time. This can be done by using cost index.
Cost index is numerical values that reflect historical change in engineering
costs. The cost index numbers are dimensionless, and reflect relative price change in
either individual cost items such labor, material, utilities; or groups of costs such
consumer prices, producer prices. Indexes can be used to update historical costs with
the basic ratio relationship as follows;
C2=C1( I 2
I 1)
where,
C1 = Estimated cost at previous time (USD)
C2 = Cost at expected time (USD)
I1 = Index value at expected time (Year)
I2 = Index value at previous time (Year)
The index used is the Chemical Engineering (CE) Plant Cost Index. The data
is gotten from the CEPCI Online. However, the available data for 2015 is only for the
range year between 2004-2013. The Table 1.1 below shows the data for cost index
from 2004 to 2013.Table 1.0.1. Chemical Engineering’s Plant Cost Index
Year CEPCI2004 444.22005 468.22006 499.62007 525.42008 575.4
(Source: CPCEI Online, 2015)
Table 1.1. Chemical Engineering’s Plant Cost Index (Contined)
Year CEPCI2009 521.92010 550.82011 585.72012 584.62013 567.3
(Source: CPCEI Online, 2015)
Using the data above, we can projected annual cost index in year of 2018.
Projections made by the cost growth index, based on data annually. First, we can plot
it as Figure 1.1 below. Then , we get the equation y = 14.4 x – 28,389. So, for
estimate annual cost index in 2018, we can use that equation.
2002 2004 2006 2008 2010 2012 20140.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
f(x) = 14.3993939393939 x − 28388.8727272727R² = 0.773764589894395
Year
CEPC
I
Figure 1.0.1. Chemical Engineering’s Plant Cost Index Graphic (Source: CPCEI Online, 2015)
By extrapolating the data and graphic, we can get a cost index value of 670.2 on
2020, as stated in Table 1.2 below:
Table 1.0.2. Projection of Chemical Engineering’s Plant Cost IndexYear CEPCI2014 612.62015 627.02016 641.42017 655.82018 670.2
(Source: Author’s Personal Data, 2015)
1.2. Direct Cost
Direct cost is the cost that is experience depreciation in the equipments. Direct
is consist of total bare modul cost, bulk material cost (piping, valve, electrical,
instrumentation, installation etc), site development cost, building cost and offsite
facilities cost.
1.2.1. Total Bare Modul Cost
To obtain an estimate of the capital cost of a chemical plant, the costs
associated with major plant equipment must be known. The calculation of total bare
module cost is begun with the calculation of purchased equipment cost. FOB (Free
On Board) is the bases cost of the purchased equipment cost. This is based on the
parameter of each equipment. The parameters and the formula we can see in Process
and Product Design Principles by Seider exactly in the Table 16.32 or based on
current price quote from a suitable vendor.
Analyses of the total installed costs of equipment in a number of typical
chemical plants indicate that the cost of the purchased equipment varies from 65 to 80
percent of the installed cost depending upon the complexity of the equipment and the
type of plant in which the equipment is installed. In other case, we can use bare
modul factor on the FOB purchase cost of the process equipment that is shown in
Table 1.3 to estimate total installation cost of process equipment. When these cost are
added to the purchase cost, Guthrie call the result the bare module cost instead of the
installed cost.
Table 1.0.3. Bare Modul Factor of Guthrie
(Source: Seider et al, 2004)
Using the design specification for all equipment, the purchase cost can be
determined, and later converted into 2018 purchase cost using the cost index. The
overall calculation is summarized on Table 1.4.
Table 1.0.4. Total Bare Modul Factor Cost
No Equipment Code Equipment Name Qty. Price/Unit Total
PriceBare Module
FactorCTbm in 2018 Reference
A Filter1 F-101 Coarse Strainer 2 $51,100 $102,000 2.32 $403,200 Seider, 20032 F-102 Multi Media Filter 2 $36,000 $72,000 2.32 $284,100
B Deoxygenation Tower1 V-101 Deoxygenation Tower 1 $46,900 $46,900 4.16 $331,800 Seider, 2003
C Deaeration Vacuum Package1 M-101 Ejector 1 $5,600 $5,690 3.30 $18,500
Seider, 20032 P-102 Vacuum Pump 2 $133,500 $267,000 2.15 $574,1003 V-102 Deoxygenation Separator 1 $3,600 $3,600 4.16 $25,500
D Centrifugal Pump1 P-101 Seawater Lift Pump 1 $23,500 $23,500 3.30 $77,600
Seider, 20032 P-103 Booster Pump 1 $17,900 $17,900 3.30 $59,1003 P-104 Seawater Injection Pump 1 $167,000 $167,000 3.30 $551,100
E Reciprocating Pump
1 P-105 Oxygen Scavenger Dosing Pump 1 $8,700 $8,700 3.30 $28,700
Seider, 2003
2 P-106 Nitrate Dosing Pump 1 $9,700 $9,700 3.30 $32,0003 P-107 Biocide Dosing Pump 1 $8,700 $8,700 3.30 $28,700
4 P-108 Corrosion Inhibitor Dosing Pump 1 $6,000 $6,000 3.30 $19,800
5 P-109 Hypochlorite Dosing Pump 1 $3,400 $3,400 3.30 $11,200
(Source: Author’s Personal Data, 2015)
Table 1.4. Total Bare Modul Factor Cost (Con’d)
NoEquipment
CodeEquipment Name Qty. Price/Unit
Total Price
Bare Module Factor
CTbm in 2018 Reference
F Chemical Injection Tank
1 T-101 Oxygen Scavenger Tank 1$39,000 $39,000 1.41 $113,300
Wallas, 1990
2 T-102 Nitrate Tank 1$47,600 $47,600 1.41 $138,300
3 T-103 Biocide Tank 1$39,200 $39,200 1.41 $113,900
4 T-104 Corrosion Inhibitor Tank 1$44,800 $44,800 1.41 $130,100
5 T-105 Hypochlorite Tank 1$68,000 $68,000 1.41 $197,500
G Hypochlorite Generator
1 CH-101 Hypochlorite Generator 2$55,000 $110,000 2.00 $220,000 Alibaba, 2015
Total Bare Modul Cost $4,358,500
(Source: Author’s Personal Data, 2015)
1.2.2. Bulk Material Cost
Bulk material cost is consist of valve and instrumentation cost, piping and
fitting cost, electrical system, safety equipment, media filter cost and installation
cost. Instrumentation is the major part of the capital investment which actually
includes not only the instruments but also all auxiliries for a complete system.
Instrumentation costs may be calculated from divided type of instrumentation and
valve and also find price per unit of each equipment. Calculation for Instrumen-
tation and valve cost is shown in Tabel 1.5. Table 1.0.5. Instrumentation and Valve Cost
No Controller Note Qty. Price/Unit Total Price
1 Pressure Control
Pressure Transmitter
5 $101 $510
Pressure Indicator
5 $51 $260
2Pressure Control Valve
2" 2 $326 $6506" 3 $1,223 $3,670
3 Level ControlLevel Transmitter
1 $122 $120
Level Indicator 5 $39 $200
4Level Control Valve
6" 1 $1,223 $1,220
5 Flow Rate Control
Flow Rate Transmitter
7 $120 $840
Flow Rate Indicator
7 $51 $360
6Flow Rate Control Valve
1.5 " 4 $326 $1,3006" 3 $1,223 $3,670
7 Check Valve1.5" 4 $290 $1,1606" 2 $710 $1,420
8 Backwash Valve 6" 12 $609 $7,310
9Sludge Disposal Valve
6" 5 $609 $3,050
10 ESDV 6" 2 $4,974 $9,95011 Priority Panel 2 $7,260 $14,520
12Portable Smoke Detector
3 $1,852 $5,560
Total $55,800(Source : Hayward, 2015)
The cost for piping covers pipe, fitting, supports, and other terms involved
in the complete erection of all piping used directly in the process. The cost of
piping depending upon the size of pipe or fitting and length of pipe. Calculation
for piping and fitting cost is shown in Tabel 1.6 and 1.7. Table 1.0.6. Piping Cost
Size (in)
Length (in)
Wall Thickness (in)
Mass (lb)
Mass (kg)
Price/tonTotal Price
1.5 59.06 0.21 34 15 $ 665 $10 6 236.22 0.86 2,213 996 $ 686 $680
10 393.70 1.51 10,791 4,856 $ 697 $3,390 Total $4,100
(Source : US Pipe, 2015)
Table 1.0.7. Fitting CostType Size (in) Qty. Price/ unit Total Price
Elbow 90o
1.5 35 $98 $3,4106 15 $184 $2,75010 8 $227 $1,810
Tee6 4 $22 $9010 2 $24 $50
Bend1.5 12 $85 $1,0206 6 $153 $92010 4 $188 $750
Total $10,800(Source : Hayward, 2015)
In ordinary chemical plants, the electrical installation consists of four
major components. Those are power wiring, lighting, transformation and service,
and instrument and control wiring. The complete installed cost of electrical may
be calculated that is shown in Tabel 1.8. Table 1.0.8. Electical System Cost
Requirement Qty. Unit Price/Unit Total PriceBuilding Lamp 10 Unit $20 $200Outdoor Lamp 8 Unit $20 $200Panel Distribution Lighting 1 Lot $1,707 $1,700Transformation, metering and protection system
1 Lot $36,321 $36,300
UPS + Battery 1 Lot $88,850 $88,900LV Switchboard 1 Lot $62,500 $62,500Cathodic Protection 1 Lot $25,500 $25,500
Total $215,300
In seawater injection plant, is used multi media filter to filter the solid
seawater. So we can estimate media filter that is used in multi media filter. The
type of media filter is antrachite, sand and garnet with volume that is shown in
Table 1.9. Media filter cost has been calculated and it shown in Tabel 1.9 with
volume and height in column that is gotten in sizing assignment.
Table 1.0.9. Media Filter Cost
Type Media
Height (m)
Volume (m3)
Density (kg/m3) Qty. Price per
ton Total Price
Antrachite 0.2 1.41 1,600 2 $190 $430Sand 0.5 3.53 2,650 2 $80 $700Garnet 0.2 1.41 4,200 2 $200 $1,200
Total $2,300(Source : Alibaba, 2015)
The other of bulk material cost that is used in seawater injection plant is
safety equipment such as APAR, safety sign and personal protective equipment.
And also, the installation cost like water installation, electrical installation and
hydrant installation is put in bulk material cost. Calculation for safety eqquipment
cost and installation cost is shown in Tabel 1.10 and 1.11.
Table 1.0.10. Safety Equipement CostType Qty. Price/ unit Total Price
APAR 25 Kg 2 $1,704 $3,410APAR 6 Kg 6 $370 $2,220Safety Sign 10 $200 $2,000PPE standard Oil & Gas (Safety Shoes, Safety Helm, Safety Glass, Ear Plug) 8 $148 $1,180
Total $8,800
Table 1.0.11. Installation CostInstallation Cost
Water Installation $8,500Electricity Installation $6,500Hydrants Installation $4,500
Total $19,500
1.2.3. Site Development cost
The site development costs consist of constructions for fencing, grading,
roads, sidewalks, railroad sidings, landscaping, and similar items. By following
Guthrie metodh, it can be estimate as an amount equivalent to 10-20 % of the total
bare module cost for grass plant root and equivalent 4-6 % of the total bare
module cost for brown plant root. In seawater injection plant, site development is
consist of prepare the steel platform for building modular deck. Cost of site
preparation of our plant can be seen at Table 1.12. Table 1.0.12. Site Development Cost
Type Area (m2) kg/m2 mass (kg) USD/ton Total Price
First Area
Floor 1 48 212.9 10,219 3,850 $39,300Floor 2 48 212.9 10,219 3,850 $39,300Floor 3 42 212.9 8,942 3,850 $34,400
Second Area
Floor 1 15 212.9 3,194 3,850 $12,300Floor 2 15 212.9 3,194 3,850 $12,300
Total $137,600(Source : Author’s Personal Data, 2015)
1.2.4. Building Cost
In estimating the cost for buildings, depend construction and existence of
plant site. Cost for plumbing, heating, lighting, ventilation, and similar building
services are list the erected unit costs of buildings and building components. But,
In our plant, there are no building like office, laboratory or station. So, building
cost in our plant is $0. Control room for our plant is joined with main control
room that in kerisi field platform and also the buliding for labor is joined in main
office in kerisi field platform.
1.2.5. Offsite FacilitiesCost
Offsite facilities include such as utilities for supplying steam, water,
power, compressed air, and fuel in an industrial plant. Waste disposal, fire
protection, and miscellaneous service items also are included under the general
heading of service facilities cost. In our plant, offsite facilities that is used is
power generator, cooling and process water and compressed air for instrument air.
The total cost for offsite facilities in chemical plants has been calculated and is
shown in Table 1.13.
Table 1.0.13. Offsite Facilities CostUtility Cost
Electricity (Power Generator) 2,694.54 kW 203 $/kW $547,000 Cooling Water 156.74 GPM 58 $/GPM $9,100 Process Water 2.22 GPM 247 $/GPM $500 Air Instrument Compressor Package
1 Lot $25,000
Total $581,600 (Source : Author’s Personal Data, 2015)
1.3. Indirect Cost
Indirect cost is the cost that is not include depreciation in the investation or
equipments . Indirect is consist of engineering and supervisior cost, contruction
expenses, contractor fee and contingency cost.
1.3.1. Engineering and Supervisior Cost
The engineering costs, sometimes referred to home office costs or
contractor charges, include the costs of detailed design and other engineering
services required to carry out the project construction design and engineering,
drafting, purchasing, accounting, construction and cost engineering, travel,
reproductions, communica-tions. This cost is normally considered an indirect cost
in fixed capital investment and is approximately 8 percent of the total direct costs
of the process plant. The calculation of engineering and supervisior cost is shown
in Tabel 1.15.
1.3.2. Construction Expenses
Construction is the item else that is included into indirect plant cost and
consist temporary construction and operation, construction tools and rentals, home
office personnel located at the construction site, construction payroll, travel and
living, taxes and insurance, and other construction overhead. This expense item is
occasionally included under equipment installation, or more under engineering,
supervision, and construction. If construction or field expenses are to be estimated
separately, the construction expenses average roughly 10 percent of the total
direct costs. The calculation of contruction expenses is shown in Tabel 1.15.
1.3.3. Contractor Fee
The contractor’s fee depends upon the size, complexity, and location of
the plant. It may be estimated as being equivalent to 3 percent (Seider, 2004) of
total direct plant cost. The calculation of contractor fee is shown in Tabel 1.15.
1.3.4. Contingency Cost
Contingency charges are extra costs added into the project budget to allow
for variation from the cost estimate. In order to compesate for unpredictable
expense, minor process changes, price changes, and estimating errors, a
contingency charge is applied against the direct plant cost. It may be estimated as
being equivalent to 15 percent (Seider, 2004) of total direct plant cost with
average contingency. The cost of contingencies varies considerably, with 15 %
being a useful estimate when the design team is unable to make a better estimate.
The calculation of contingency cost is shown in Tabel 1.15.
1.4. Additional Cost
1.4.1. Royalties Cost
When a company desires to use a process that is covered by patents owned
by patent owned by another company , a license may sometimes be negotiated.
The license fee may be one time fee, in which case that fee is included in capital
investement as one time royalty or pay up license. In the absence of data, an initial
royalty fee of 2 % of total depreciable capital cost.
1.4.2. Plant Start Up Cost
Plant start up cost divided into two categories : (1) the costs incurred by
the contractor in checking equipment performance, calibrating, controller and
other plant equipment and commisioning the plant, and (2) those cost incurred by
plant operating personel when starting up and shutting down the plant. The cost of
plant start up is typically estimate as 10 % of total depreciable capital cost.
1.4.3. Supporting Facilities Cost
The supporting facilities costs consist of equipment that is used for labor
room like desk, chair, computer, etc. Calculation for supporting equipment cost is
shown in Tabel 1.4.
Table 1.0.14. Supporting Facilities CostEquipment Qty. Price / Unit Total Price
Office Desk 5 $111 $600 Office Chair 5 $67 $300 Air Conditioner 5 $370 $1,900 Locker 1 $259 $300 Computers 5 $630 $3,200 White Board 5 $56 $300 Cupboards 5 $150 $800 Telephone 5 $74 $400 Photocopy Machine 1 $1,000 $1,000 Fax Machine, Scanner and Printer 2 $370 $700
Total $9,500 (Source : Author’s Personal Data, 2015)
1.5. Working Capital
Working capital is needed to cover operating cost that required for early
operation of the plant. Includes cash cost of inventories, net accounts receivable,
spare parts or supplies, and cash-on-hand. The working capital for an industrial
plant consists of the total amount of money invested in raw materials and supplies
carried in stock, finished products in stock and semifinished products in the
process of being manufactured, accounts receivable, cash kept on hand for
monthly payment of operating expenses, such as salaries, wages, and raw-material
purchases, accounts payable, and taxes payable. In general, it will be found to be
amount equal to 15 % of the total capital investment cost (CTCI) or or 17.6 % of
total permanent investment cost (CTPI). The calculation of working capital cost is
shown in Tabel 1.15.
1.6. Calculation of Total Capital Investment
Total Capital Investment, CTCI, is total of total permanent investment (CTPI)
and working capital cost (CWC). However, total permanent investment (CTPI) is
total of total depreciable capital (CTDC) and additional cost like royalties and start
up cost. And also total depreciable capital (CTDC) is total of total direct cost
(total bare module, site development, buliding, and offsite facility cost) and total
indirect cost (engineering, contruction, contingency cost and contractor fee). The
calculation of total capital investment (CTCI) is shown in Table 1.15.
Table 1.15. Total Capital Investment
Type Cost Kind of Cost Symbol Cost Note
Direct Cost
Total Bare-Module Cost CTBM $3,358,500 Calculated Cost of Bulk Material CBulk $316,600 Calculated Site Development Cost Csite $137,600 Calculated Building Plant Cost CBuild $0 (no buliding office, etc) Offsite Facilities Cost Coffsite $749,500 Calculated
Total Direct Permanent Investment CDPI $4,562,200 (CDPI = CTBM + Cbulk + Csite + Cbulid + Coffsite)
Indirect Cost
Engineering and Supervision Ceng $365,000 (8% CDPI) Construction Expense Ccontruction $456,200 (10% CDPI) Contingencies Cost Ccontingency $684,300 (15% CDPI) Contractor’s Fee Ccontractor $136,900 (3 % CDPI)
Total Depreciable Capital CTDC $6,201,600 (CTDC = CDPI + Ceng + Ccontruction + Ccontingency + C contractor)
Additional Cost
Royalties Cost Croyal $124,100 (2% CTDC) Plant Start Up Cost Cstartup $620,500 (10% CTDC)
Supporting Facilities Cost Csupport $9,500 Calculated Total Permanent Investment CTPI $6,945,700 (CTPI = CTDC + Croyal + Cstart up)
Working Capital
Working Capital CWC $1,222,700 (CWC = 17.6 % CTPI)
Total Capital Investment CTCI $8,183,400 (CTCI = CTPI + CWC) (Source : Author’s Personal Data, 2015)
1.7. Capital Cost Breakdown
Total capital investment breakdown is shown in Figure 1.2. Based on
Figure 1.2, direct cost with pencentage of 56 % is the highest cost in capital cost.
The other cost like indirect cost, additional cost and working capital cost have
percentage value of 20 %, 9 % and 15 %.
Figure 1.0.2. Total Capital Investment Breakdown (Source : Author’s Personal Data, 2015)
Direct cost and Indirect cost breakdown is shown in Figure 1.3 and Figure
1.4. Based on Figure 1.3, Total bare modul cost with pencentage of 74 % is the
highest cost in direct cost. Based on Figure 1.4, contingency cost with pencentage
of 42 % is the highest cost in indirect cost.
Figure 1.0.3. Direct Cost Breakdown(Source : Author’s Personal Data, 2015)
Figure 1.4. Indirect Cost Breakdown (Source : Author’s Personal Data, 2015)