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CONTENTS
CHAPTER 1 ................................................................................................................................................. 3
1.1 INTRODUCTION ............................................................................................................................ 4
1.2 PROCESS SELECTION................................................................................................................... 5
1.3 PRODUCT SPECIFICATIONS ....................................................................................................... 8
1.4 LITERATURE REVIEW ON PROCESS DETAILS ....................................................................... 9
1.5 INCLUSIVE CHEMISTRY ........................................................................................................... 11
1.6 REACTION KINETICS ................................................................................................................. 12
1.7 THERMODYNAMICS .................................................................................................................. 13
1.8 SUPPLY AND DEMAND.............................................................................................................. 14
CHAPTER 2 ............................................................................................................................................... 18
2.0 SITE LOCATION ........................................................................................................................... 19
2.1.0 FACTORS IN CHOOSING SITE LOCATION ......................................................................... 19
2.1.1 EASE OF TRANSPORTATION ................................................................................................ 20
2.1.3 AVAILABILITY OF RAW MATERIAL .................................................................................. 21
2.1.3 AVAILABILITY OF LAND AND LAND PRICES .................................................................. 22
2.1.4 LABOR SUPPLY ....................................................................................................................... 23
2.1.5 AVAILABILITIES OF UTILITIES ........................................................................................... 24
2.1.6 SAFETY ..................................................................................................................................... 25
2.2.1 OVERVIEW AND COMPARISON OF SITE LOCATION ...................................................... 27
2.3 SCREENING AND SCORING METHOD .................................................................................... 29
2.3.1 CONCEPT SCREENING ........................................................................................................... 30
2.3.2 CONCEPT SCORING ................................................................................................................ 31
2.4 CONCLUSION OF SITE LOCATION .......................................................................................... 32
CHAPTER 3 ............................................................................................................................................... 33
3.0 MATERIAL BALANCES ON MAJOR COMPONENT ............................................................... 34
CHAPTER 4 ............................................................................................................................................... 48
4.0 PROCESS FLOW DIAGRAM AND STREAM TABLE .............................................................. 49
4.1 REACTOR, R-1201 ........................................................................................................................ 51
4.2 HEAT EXCHANGER, E-1207....................................................................................................... 52
1
4.3 TOWER (T-1202) ........................................................................................................................... 54
CHAPTER 5 ............................................................................................................................................... 59
5.1 CAPITAL COST ESTIMATION ................................................................................................... 60
5.1.1 BARE MODULE COST, CBM .................................................................................................... 60
5.1.2 FIXED CAPITAL INVESTMENT (GRASSROOT) ............................................................... 133
5.2 MANUFACTURING COST ESTIMATION ............................................................................... 134
5.2.1 COST OF RAW MATERIALS, CRM ....................................................................................... 134
5.2.2 COST OF OPERATING LABOUR, COL ................................................................................. 135
5.2.3 UTILITIES COST, CUT ............................................................................................................ 138
5.2.4 REVENUE PER YEAR BASED SELLING PRICE OF PRODUCT ...................................... 143
5.2.5 LAND COST ............................................................................................................................ 143
5.2.6 WORKING CAPITAL ............................................................................................................. 143
5.2.7 SALVAGE COST ..................................................................................................................... 143
5.3 PROFITABILITY ANALYSIS .................................................................................................... 144
5.3.2 COMPARISON BETWEEN NON-DISCOUNTED AND DISCOUNTED PROFITABILITY
152
REFERENCE............................................................................................................................................ 153
2
CHAPTER 1
PROCESS BACKGROUND AND SELECTION
3
1.1 INTRODUCTION
Heptane is a higher olefin, or alkene with the chemical formula of C7H14. The commercial
product is a liquid that is a mixture of isomers. Heptane is typically used as an additive in
lubricants, it also acts as catalyst and as a surfactant.
The purpose of this project was to simulate the separation process that occurs during the
production of 1-heptene and other unsaturated products from an initial mixture of C3 and C4
hydrocarbons. 1-heptene is the main product desired from this process since it has several
applications including usage as a high-octane blending agent for gasoline and it aids in the
production of plasticizers.
The market for the 1-heptene product would be as a high octane blending agent for gasoline
or in the production of plasticizers. Based on preliminary market estimates, a production capacity
of 20,000 metric tons per year of 1-heptene using 8000 operating hours/y was set. First, the raw
materials to the process contain a wide variety of chemicals. This is typical for oil refinery and
some petrochemical operations. Second, no specific kinetic equations are given for the reactions.
Instead, the results of laboratory tests using the desired catalyst at different conditions and using
different feed materials are used to guide the process engineer to an optimum, or close to an
optimum, reactor configuration. It should be noted that a preliminary economic analysis, and
hence the feasibility of the process, cannot be determined without these information such as Plug
Flow Diagram PFD, stream, equipment summary, and utility summary tables, as long as yield
and conversion data are available and the reactor configuration can be estimated.
Chemical reaction between butene and propylene will produce heptane and also side products
such as hexene, octane and undecene. This reaction involves used of catalyst. Catalyst used to
speed up a chemical reaction by lowering the amount of energy needed. Catalysis is the
backbone of many industrial processes, which use chemical reactions to turn raw materials into
useful products.
4
1.2 PROCESS SELECTION
a) Production of heptane from propylene and butane
Two liquid feed streams containing propylene and butene and a stream of catalyst slurried
with 1-hexene are mixed at a pressure of approximately 8 bar prior to being sent to the reactor.
The reactor consists of five essentially well-mixed sections, with similar concentrations in each
section. Heat removal is achieved by using pump-around from each stage through external heat
exchangers. The reactor effluent is partially vaporized before being fed to the first of three
distillation columns. The first column (T-1201) removes the unreacted C3 and C4 components,
which are used subsequently as fuel (Stream 7) or sent to LPG storage (Stream 6). The next
column (T-1202) separates the 1-hexene product overhead (Stream 10) and sends the bottoms
stream to the final column (T-1203). In T-1203, the main 1-heptene product (Stream 13) is taken
overhead, and the C8 and heavier compounds are taken as the bottoms product (Stream 14). The
bottoms product is processed off-site to remove the heavy material and to recover spent
catalyst.[1]
5
(Plug Flow Diagram)
6
For the process selection, two process were considered to be chosen for the plant design.
The screening and scoring concept were carried out to determine the best PFD for the production
of heptane. The selection of process was tabulated in table 1.1 (data for distillation column for
both process) and table 1.2 (Selection of process by screening concept) based on the distillation
column design using screening concept.
DISTILLATION COLUMN DESIGN

CRITERION PROCESS 1 PROCESS 2
T-1201 T-1202 T-1203 T-501 T-502 T-503
Actual tray 20 38 41 18 33 33
Material of
CS CS CS SS SS SS
construction
Column
1.05 1.10 0.90 1.10 1.30 1.00
diameter
Table 1.1 Data for distillation column for both process
DISTILLATION COLUMN DESIGN

CRITERION PROCESS 1 PROCESS 2
T-1201 T-1202 T-1203 T-501 T-502 T-503
Actual tray + + + 0 0 0
Material of
+ + + - - -
construction
Column
+ + + - - -
diameter
Total score 3 3 3 -2 -2 -2
Rank 1 2
Table 1.2 Selection of process by screening concept
7
1.3 PRODUCT SPECIFICATIONS
Heptane is used widely in production of plasticizers. Plasticizers are colorless and

odorless esters that increase the elasticity of a material (eg: polyvinylchloride (PVC)). The
benefit of plasticizers is the durability they confer onto PVC application, which can ensure high
performance for up to 50 years.
From this process there are also several minor products produce instead of major product
which are octane, hexene and also undecene. Octane is an intermediate used in the production of
industrial products. Besides, hexene acts as co-monomer in the production of polyethylene while
undecene has the lowest demand in the market compare to the other minor products.
Regarding to the major products produce, we should know the properties of the product
produce. Heptane is used to make other chemicals. Heptane can effect when breathed in and may
be absorbed through the skin. Besides, contact can irritate the skin and eyes. Furthermore, this
substances also highly flammable liquid and a dangerous fire hazard. Some workplace controls
and practices should be considered when handling this substances. First of all, automatically
pump liquid heptane from drums or other storage containers to process containers. Besides,
before entering the confined space where heptane may be present, check to make sure that an
explosive concentration does not exist. Workers whose clothing has been contaminated by
heptane should change into clean clothing promptly. Then the contaminated clothing should be
laundered by individuals who have been informed of the hazards of exposure to heptane. Other
than that, shower facilities should be provided in case of emergency such as skin or eyes
contacted with heptane which it has to be washed immediately to avoid any irritation happen and
long term effects. The most important things, do not smoke in the workspace handling with
chemical that highly flammable to avoid any explosion or incident to happen. [2]
8
1.4 LITERATURE REVIEW ON PROCESS DETAILS
The base case process for the separation of 1-Heptene from other hydrocarbons. In it, a
reactor partially vaporized effluent is fed to a series of three distillation columns. The first
column T-1201, will separate the C3 components from the C4 and heavier components. This
column uses a partial condenser, sending a pure propane stream off as vapor distillate and the
C4 compounds (1-butane, isobutane, 1-butene, and isobutene) off as liquid distillate. The propane
stream is then used as fuel gas. The C4 stream is recovered and sent to an LPG tank for later sale.
The bottoms from T-1201 are then sent to a second column, T-1202. T-1202 separates 1-hexene
and some C4 impurity from 1-heptene and heavier components. The 1-hexene recovered has a
modest 93% purity. The bottoms from T-1202 are then sent to the final column T-1203, the
largest column of the set, which operates at near atmospheric pressure and higher temperatures.
Due to the size of this column, the feed must be pumped up from T-1202 in order to reach the
feed stage. The 1-Heptene distillate stream will contain 99% pure heptene. The bottoms of T-
1203 will contain almost all of the octene and undecene specified in the problem, as well as a
small but significant amount of 1-Heptene. Both the Heptene and Octene product streams are
then cooled to a final temperature of 45°C using simple double pipe heat exchangers running
cooling water. [3]
The condenser of each column is a fixed shell and tube heat exchanger, running cooling
water between 30-40°C. A small reflux drum helps to control flow along the column, and a
pump is used to send the flow back to the top stage above stage pressure. The re-boiler of each
column is a floating head heat exchanger running low pressure steam at 160° C.
For the separation between the hydrocarbons in the tower is separated based on the
heavier compounds. The higher the boiling point the heavier the compounds, then it flow out
through the bottom stream of column. The process for the production of heptane occurs
continuously. Continuous process or continuous flow process because the materials, either dry
bulk or fluid that are being processed are continuously in motion, undergoing chemical reactions
or subject to mechanical or heat treatment.
9
Regulatory approach to continuous processing:
1) Validation master plan required prior to implementation

2) Risk assessment required
3) Assessment topics
• Batch definition (Part of the development of the batch definition should
include an idea of how long the batch remains in each unit operation)
• Residency time distribution
• Startup and shut down to steady state
• Plant shutdowns: planned or unplanned
• Equipment, resin and membrane lifespans
• Continuous process qualification
• Release Testing
✓ Offline and online testing
✓ Offline in process sampling
✓ Batch/lot testing
✓ Parametric release / Real Time Release Testing (RTRT)
4) Initial process qualification and validation
5) Continuous/ongoing process qualification
• Statistical process control
• Parametric release (RTRT,) must be supported by process and equipment
qualification and process validation
6) Suggested to develop for whole process prior to qualification
10
1.5 INCLUSIVE CHEMISTRY
This process is designed to convert C3 and C4 unsaturated hydrocarbons (propylene and

butene) into 1-heptene and other unsaturated hydrocarbons. The reaction processes and reactor
optimization are to be determined by laboratory trials over a range of feed concentrations and
temperatures. This concentration and temperature dependence data is not available. Only the
conversion data and inlet and outlet stream compositions are known for the initial process. No
kinetic or equilibrium data is supplied for this process. The primary reactions include:
• C3H6 + C3H6 = C6H12 formation of 1-Hexene

• C3H6 + C4H8 = C7H14 formation of 1-Heptene
• C4H8 + C4H8 = C8H16 formation of 1-Octene
• C3H6 + 2C4H8 = C11H22 formation of 1-Undecene
This set of reactions is exothermic. Therefore, the initial design of the reactor is at 45° C to
keep the reactions from running away. The major constraints on this problem are the lack of
kinetics data for the reactions. This inhibits any attempt to design an alternate reactor system.
The reactor itself must have a good heat removal rate in order to keep the system within
reasonable bounds. All streams should be kept pressurized so air inflow to the system does not
occur.
11
1.6 REACTION KINETICS
The process is based on the liquid-phase catalytic co-dimerization of propylene and butene
using an organometallic catalyst. This catalyst is slurried with a small volume of the hexenes
product and fed to the reactor with the feed streams. Because the value of catalyst is very little
compared to other stream. It considered insignificant hence excluded form material balance) [1].
The primary reactions that take place are as follows:
C3H6 + C3H6 = C6H12 formation of 1-Hexene
C3H6 + C4H8 = C7H14 formation of 1-Heptene
C4H8 + C4H8 = C8H16 formation of 1-Octene
C3H6 + 2C4H8 = C11H22 formation of 1-Undecene
In this process, we tried to considered several reactor configuration so that the selectivity of the
heptene reaction is maximized. It was known that in a minimum volume, plug flow reactor in
which the butene feed was introduced at one end and the propylene stream was injected along the
side of the reactor was the best reactor of all. However, it was still decided to use a reactor with
five equal stages in which the concentration in each stage is maintained approximately the same
due to the complexity of the plug flow reactor. To increase the purity of the heptene stream, several
new specification of distillation column was made. But, due to cost-constrains, we stick with the
initial specification because it involves increasing the size of distillation column hence increases
the cost. The purity of heptene produce in the end stream however is still very high and changing
the specification of the distillation column was not considered as cost effective as the change it
made was not very significant. The removal of heat and mixing in each stage are dome by removing
a stream of material and pump it through external heat exchanger and back into the same stage of
the reactor. We can considered the inside of the reactor is similar to a five-plate distillation column
(without vapor flow) because the liquid cascades downwards by means of liquid down comers.
The dimensions of the reactor was taken directly from Turton et al.[1].
12
1.7 THERMODYNAMICS
The reaction is kinetics-controlled. Heptene is a kinetic product where it is associated with
lowest energy barrier to its formation. It is not a thermodynamic product because thermodynamic
product is the one that the most stable product with the lowest energy, irrespective of any
intervening barrier (If the barrier to its formation is the lowest, the thermodynamic product may
be the kinetic product as well). In the production of Heptene, the reaction is run at as low
temperature as possible but will still manage to overcome the activation energy and hence form
the product. Running this reaction at this condition will tend to favour the kinetic product, this
because the starting materials will only just have enough energy to cross the lowest barrier to the
corresponding kinetic product. Inversely, running this reaction at a high temperature will tend to
favour the thermodynamic product, noted that the reactants won’t decomposed at designated
temperature. This because at 'high temperatures' the starting materials will all have enough energy
to overcome any barrier en route to their lowest energy configuration. Therefore, the fastest one to
overcome the energy barrier will form the most which in this case is Heptene hence becoming the
major product. Therefore, there are no competio
13
1.8 SUPPLY AND DEMAND
In the production of heptene, the process require catalytic breakdown of propylene and
butene, C3 and C4 olefins respectively. The oligomers is produced by the polymerization of
refinery streams containing C 3 and C4 hydrocarbons. This process is expensive but give high rate
of return at least that what it was in the 90’s. Heptenes is once used for the production of green
gasoline and as plasticizers. In the beginning, Heptene were developed to provide a source of
high-octane blending components from refinery gases, but many have since been adapted to
produce heptenes and octenes for chemical uses. Heptenes are used primarily to produce isooctyl
alcohol which is a precursor for lube oil additives, diisooctyl phthalate (DIOP), other plasticizers,
and herbicide esters. Isooctyl alcohol was once the predominant plasticizer alcohol, but
development of plasticizers from competing alcohols such as 2-ethylhexanol and linear alcohols
has eroded its market[3].Octenes are precursors of isononyl alcohol, which in turn is the raw
material in the manufacture of diisononyl phthalate (DINP) plasticizers. These plasticizers
compete directly with dioctyl phthalate in many applications. However, due to advancement of
technology. It appears that the method is no longer suitable as there are numerous of new cost-
effective method to make plasticizers and so on hence replacing Heptenes as the feed material. It
was found that Heptenes is not use widely as it used to be nowdays. But take noted, that there are
still demand of Heptene and it’s not that production of Heptene stopped entirely. In 2008, Sasol
company made an initiative to turn Heptene into 1-Octene. The chemical 1-octene is a flammable
liquid with a gasoline-like odor. It is partially soluble in acetone and very slightly soluble
in methanol. It can irritate the skin, eyes and lungs.Heptene is considered as linear alpha olefins
because it have carbon ranging from C6-C18. Linear alpha olefins produce a briad range of even-
numbered alpha olefins based on ethylene oligomerization techniques[]. It was initially targeted
for plasticizers and detergent end-uses. But, it has becomes very important in the production of 1-
butene, 1-hexene and 1-octene. As the industry of polyethylene remain growing, there has been an
increased in the demand of co-monomers. This is because it serves a wide range of applications.
The conversion of heptene into octene is possible as this steps has been taken by the Sasol company.
The main use of octene was to make linear low density polyethylene which accounts for 56%
world consumption. The US is the biggest consumer which took 47% consumption followed by
Western Europe (46%) Global consumption was 578,000 tonnes split 48.3% in the US, 25.2%, in
Western Europe, 5.8% in Canada, 5.1% in Asia-Pacific, 4.3% in Japan, 4.2% in Asia/Middle East,
14
2% in Latin America and 1% in Africa. South Africa was the largest exporter, of 89,000 tonnes,
and Asia-Pacific was the largest importer, accounting for 29,500 tonnes[2]. Other uses includes
the making of plasticizers, surfactant, pulp amd paper, lubricants, synthetic acid etc. The price of
comonomers depends on its grade. Usually, it has the purity of 99%, June contracts for high-purity
grade were 83-88 cents/lb in US, €1.50-1.60/kg in Europe and $1.91-2.01/kg in Asia. Thee demand
has been rising Marketns The highest growth is expected in Asia-Pacific (18%/year), and
Asia/Middle East (12%/year). Markets in Western Europe will grow at 8%/year, and at 6%/year
in the US, Canada and Eastern Europe. Australia/New Zealand, Africa, Latin America and Mexico
will see demand rise at 5.5%/year with Japan at 4%/year. Given in figure 1 is the demand of alpha
olefins by percentage in a western Europe country (Germany)[2]. The market of linear alpha
olefins has saw a remarkable growth over the years. Alpha olefins are used as polyethylene
comonomer (33%) and as raw materials for detergent alcohols (22%), oxo alcohols (10%), and
lubricants and lube oil additives (18%) [3]. Among the many regions that is the biggest consumer
of alpha olefins. Asia-Pacific is expected to be the fastest-growing alpha olefins market. The high
demand for polyolefins which are used to manufacture LDPE and HDPE become the driving factor
for the increase in demand. LDPE and HDPE are further used for the manufacture of various types
of plastics and packaging that have an increasing demand in the region. With China becoming the
largest producer of polyethylene globally, hence it was expected to drive the alpha olefins market
in the region [4]. Alpha olefins are used majorly in the automotive and plastic industries. They are
also expected to have decent growth in other applications, such as in detergents and soaps. Olefins
are essential to prepare emulsions for detergents, soaps, and creams.
15
Figure 1: Western Europe Germany Alpha olefins market by type[2]
Technavio has published a new report on the global alpha olefins market from 2017-2021.
(Graphic: Business Wire)
.
16
The following pie chart shows world consumption of linear alpha-olefins:
The global consumption of linear alpha olefins from 2012-2016 grew at an average annual
of rate of 5.6%. The favtor of this growth is pushed by the demand of polyethylene comonomers,
detergent-range alcohols (based on linear alpha internal olefins), polyalphaolefins, oil field
chemicals, and surfactants. North America has accounted for almost 40% of the world production
of LAO, followed by the Middle East (19%), Western Europe (16%), China (10%), the rest of
Asia, Africa, and Central and South America. Other than that, there are capacity expansion for
full-range LAOs, the majority of new capacity has been for on-purpose technology for the
production of hexene-1 and octene-1. World consumption of LAOs is forecast to grow at an
average annual rate of 3.7% during 2016–21. However, regional consumption of LAO for oil field
chemicals is expected to grow at a healthy rate during 2016–21. Regions such as Southeast Asia
has growth rate of linear alpha olefins market demand more than 4%. [6]. After doing some
calculation, the profit margin for this plant to produce heptene is 20.41% at its 15th year. Targeted
manufacturing volume is 20,000 metric tonnes/year.
17
CHAPTER 2
SITE LOCATION
18
2.0 SITE LOCATION
2.1.0 FACTORS IN CHOOSING SITE LOCATION
Site location is the most important things in building a chemical plant. We have chose three
sites for our chemical plant site locations which is at Kerteh, Terengganu, Gebeng, Pahang and
Bintulu, Sarawak. Among the three sites, a strategic and suitable sites must be considered and the
equipment layout also need to be planned in order to build the best chemical plant. When the site
location is strategic and the equipment layout is planned, this plant will surely operate at its best
condition thus will securing the quality of our production which is the heptene gas. In order to
choose and select the best chemical plant site location, some factors need to be considered. The
factors are the ease of the transportation, availability of raw material, availability of land and land
price, labor supply, availability of utilities, and safety. A good chemical plant must be able to give
the profits and market prices.
19
2.1.1 EASE OF TRANSPORTATION
The ease of transportation is all about the easiness of the raw material to be transport to our
plant and the product to be transport to the market. This transportation factor is among the
important factor too in selecting site location. The transport facilities like the street or road, rail,
waterway and seaport need to be accessible and close to the plant. Our plant need at least to be
close to two of this major facilities. Not to forget, the distance between raw material and site is
important as it will determine the price for transportation.
Locations
Ease of transportation
Kerteh, • Kerteh port

Terengganu • Kuala Terengganu-Kuala Lumpur new highway.
• Kuala Terengganu airport
• Kemaman Port
• 35 kilometer from Kemaman town
Gebeng,
Pahang • Kuantan port
• Kuantan airport
• East coast highway
259 km to Kuantan town
Bintulu, • Bintulu Port

Sarawak • Bintulu Airport
172 km from Miri
Table 2.1: Ease of Transportation
20
2.1.3 AVAILABILITY OF RAW MATERIAL
This factor is also important as the raw material is important in producing the desired product.
In this case, for our heptenes production, the raw materials are the propylene and butene. For the
smooth production of this heptenes gas, we need to know our raw materials suppliers. It is best to
have a plant that is situated close and near to the supply of raw materials as it will cut the cost for
the transportation thus reducing the capital costs of the plant. Table 2.2 below shows production
of petrochemical feedstock in Malaysia for our main raw materials which are propylene and
butenes.
Chemical Capacity(mtpa) Company Company location
Propylene 854 thousand - MTBE (M) Sdn Bhd - Gebeng, Pahang
- Optimal Olefins (M) - Kerteh, Terengganu

Sdn Bhd
Butene 20.4 million - Petronas Gas Berhad - Kerteh, Terengganu
- Malaysia LNG 3 Sdn - Bintulu, Sarawak

Bhd
Table 2.2: Market Supply
21
2.1.3 AVAILABILITY OF LAND AND LAND PRICES
This factor is the most important factor among all. For a chemical plant to be build, there
must be a land. It is quite hard to find an empty land nowadays. However, in selecting the land,
the land cost and price need to be considered carefully. Nowadays, the land cost relies on the
demand, availability of land, economic potential and how big the area because it might changes
without any notice. Take note that this area must be safe towards the community and not producing
hazard Table 2.3 below shows the statistics of land area available and the land prices.
Location Land available Selling price

(per square feet)
Kerteh industrial Estate, 280 acre Rm5.57
Terengganu
Gebeng industrial Park, 250 acre Rm18.00

kuantan, Pahang
100 acre Rm8.00

Bintulu, Sarawak
Table 2.3: Land prices and area
22
2.1.4 LABOR SUPPLY
The labor supply is the number of hours people are willing and able to supply at a given
wage rate. During build up of a chemical site plant, labor supply required to be considered. This
is because the location of the chemical plant must be located in the area where adequate labor
supply is available. Sufficient labor supply at the location of the chemical plant will give a merit
commitment to run the plant easily. Meanwhile, the cost of operation also can be reduced and
inexpensive if obtained manpower from surrounding area. Furthermore, every workers can works
in different departments such as operation, construction, maintenance and management in the
chemical plant. The chemical plant can provide a proper intensive training to the workers to
improve knowledge and skills. Thus, cost of hiring workers can be reduced as hiring workers that
already have good skills requires a high rate. It is not hard to find the labour nowadays as many of
the citizens are unemployed. Table 2.4 below shows the statistics of the population in every district
and the land area there.
Location Number of population Land area Training center

( km²)
Kerteh, Terengganu 207 ,400 256 Institut Teknologi

Petroleum PETRONAS
(INSTEP)
Gebeng, Pahang 461 ,906 324 Industrial Training

Institute Gebeng
Bintulu, Sarawak 183 ,402 7220 Advanced technology

Training Centre (ADTEC),
Bintulu
Table 2.4 : Population number in each district
23
2.1.5 AVAILABILITIES OF UTILITIES
Utilities plays an important role in the operation of the chemical plant. Common utilities
includes electricity, steam, energy efficiency, domestic water, wastewater treatment, etc. Power
required for electrochemical processes, engines, lightings and general utilize. Steam are required
for the warming procedure. Domestic water supply means the source and infrastructure that
provides water to households. The purpose with a domestic service water supply system is to
provide consumers with enough hot and cold water. Different sources of water may be used for
different activities, and the water sources available may change with the seasons. Whether water
is available or accessible to people depends on the time, energy and money they have to invest to
obtain it. Wastewater treatment are for the removal of suspended and dissolved solids from
industrial influent and effluent water. Wastewater treatment are developed to maximize system
efficiency and prevent any damage or equipment downtime. Table 2.5 below shows the utilities
supplier for each place.
Location Water supplier Electricity supplier Wastewater Treatment
• Syarikat Air Terengganu • Paka Power Plant

Kerteh. (SATUWATER) (900 megawatts) • Enchem Sdn Bhd
Terengganu
• PETRONAS (CUF) Sdn • YTL Power
Bhd Generation Sdn Bhd
Gebeng, • Semambu Water • Tenaga Nasional • Producing a

Pahang Treatment Berhad (TNB) treatment of
industrial
• PETRONAS (CUF) Sdn wastewater by
Bhd using phytogreen
system
Bintulu, • Laku Management Sdn • Sarawak Electricity • Highly efficient

Sarawak Bhd Supply Corporation wastewater
(SESCO) treatment facility
Table 2.5 : Utilities supplier for each place
24
2.1.6 SAFETY
Safety are important for chemical industry. There are high risk for building up a chemical
plant in terms of safety. During operations, explosion of chemical plant can be occurred due to
flooding. Lack of safety can cause injuries or even worse, it can cause death to workers and people
that stay near the plant. There are also effect of the operation of the plant on the local environment
such as smells from emissions, noise from operation of the plant, emissions into sea, etc.
Occupational Safety and Health Administration (OSHA) gives guidelines to help workers to
reduce the number of potential hazards in chemical industries. Hazard and Operability Study
(HAZOP) is a technique to determine how the system or plant deviate from the design objectives
and create risk for personnel and equipment and operability problems.
Source Potential Hazard Effects Control Measures

• High pressure & • Explosion • Isolate the incompatible
temperature • Air chemicals
Chemical • Dangerous pollution • Install pressure safety
tank, Storage chemical reaction • Flooding valve
& • Corrosion • Land • Toxic fume filtration
Transportation • Chemical spillage pollution • Put label/ warning sign
• Release of toxic at every
fume chemicals/equipments
• Store chemical in well-
ventilated area
• Ensure proper
connections of utilities
• Short circuit • Explosion • Maintenance of utilities
Utilities ignition • Keep flammable
material away from
ignition source
• Select site with minimal

• High risk of risk of natural disaster
Location • Natural disaster disaster • Keep safe distance
• Pollution between the plant site
and the local community
Environment • Untreated waste • Water • Wastewater treatment

water pollution development
Table 2.6: Effect and measure taken
25
Location Safety aspects
Kerteh. Terengganu • Kerteh is located in the east coast region and has
monsoon season
• Heavy monsoon rains have caused flooding.
• Houses, schools, hospitals for local community are

built a few kilometres away from Kerteh industrial
area.
• Kerteh Fire and Rescue station
Gebeng, Pahang • Floods
• Gebeng has service provided such as Gebeng

Emergency Mutual Aid (GEMA) which is a voluntary
crisis management organization set up from an alliance
between government and private agencies.
• Areas that always occur flooding is areas along

Kuantan River. The Gebeng bypass have less traffic
flow from the industrial estate to Kuantan port.
• Pahang Fire and Rescue department.
Bintulu, Sarawak • Bintulu are known as a town that is rare to be flooded.

However, flash flood hit due to heavy downpour.
• Bintulu has deepwater port and LNG plants are located

20km from Bintulu town.
• Fire safety and Crisis Management program are once

held in Petronas LNG
• Shell Bintulu explosion in 1997 occurred due to major

explosion in an air separation unit. Local community
are located far away from the industrial area.
• Bintulu Fire & Rescue Services department
Table 2.7: Occurrence of natural disaster
26
2.2.1 OVERVIEW AND COMPARISON OF SITE LOCATION
Gebeng, Pahang
Selection criteria Kerteh, Terengganu Bintulu, Sarawak
Ease of • Kerteh port • Kuantan port • Bintulu Port

transportations • Kuala Terengganu- • Kuantan airport • Bintulu
Kuala Lumpur new • East coast Airport
highway. highway • 172 km from
• 259 km to Miri
• Kuala Terengganu
Kuantan town
airport
• Kemaman Port
• 35 kilometer from
Kemaman town
Land Prices and

Area available (psf) • RM 5.57 • RM 18.00 • RM 8.00
• 280 acre • 250 acre • 100 acre
Labor supply High High

High
• Monsoon season • Gebeng • Deepwater

• Kerteh Fire and Emergency port and
Safety Rescue station Mutual Aid LNG plants
(GEMA) • Bintulu Fire
• Pahang Fire and & Rescue
Rescue Services
department. department
UTILITIES
Water supplier • Syarikat Air • Semambu Water • Laku

Terengganu Treatment Management
(SATUWATER) Sdn Bhd
• PETRONAS
• PETRONAS (CUF) Sdn Bhd
(CUF) Sdn Bhd
27
Electricity • Paka Power Plant • Tenaga • Sarawak
supplier • YTL Power Nasional Berhad Electricity
Generation Sdn (TNB) Supply
Bhd Corporation
(SESCO)
RAW MATERIAL SUPPLY
Propylene Kerteh Gebeng Kerteh
Butenes Kerteh Kerteh Bintulu
Table 2.8: Site location and its factor comparison
28
2.3 SCREENING AND SCORING METHOD
After we have pick three sites location and making the comparison between all of the sites,
in order to know which sites location is the most suitable and the best for the production of heptene
gas, we performed the concept selection method which consists of two stages. The first stage is
the concept screening and second stage is the concept scoring. Concept screening is a quick,
approximate evaluation. The benefits of this method are it is a customer-focused product, a
competitive design, better product process coordination, reduced time to product introduction,
effective group decision making and also documentation of the decision process. The factors were
used to evaluate the alternatives. These criteria are used to narrow down the alternatives or options
and among all the best one will be chosen.
Concept screening is a quick, approximate evaluation to produce a few viable alternatives.

In Concept Screening, we used the symbols of ‘+’,’-‘, and 0. Value of ‘+’ meaning ‘better than’,
zero for ‘same as’ and ‘-‘ as ‘worse than’. We will assigned the factor of alternatives to ‘+’,’-‘, or
0 symbols. While Concept Scoring is a more careful analysis of these few factors in order to choose
the most alternatives that prone to lead to the product success. In Concept scoring, we use the value
of 1 to 5 as 1 is much worse than reference, 2 is worse, 3 is same as reference, 4 is better and 5 is
much better than reference. So, the factor is assigned from value 1 to 5. The selection of sites were
tabulated in Table 2.1 and 2.2.
29
2.3.1 CONCEPT SCREENING
SITES
SELECTION CRITERIA
KERTEH, GEBENG, BINTULU,

TERENGGANU PAHANG SARAWAK
Ease of transportation 0 0
+
Availability of raw + 0 0
materials
Availability of land & land + 0 -

price
Labor supply 0 + -
Availability utilities + + +
Safety 0 0 0
Total score 4 2 -1
Rank 1 2 3
Table 2.9: Selection of site location by Concept Screening
30
2.3.2 CONCEPT SCORING
SITES
SELECTION
CRITERIA
KERTEH, GEBENG, BINTULU,
TERENGGANU PAHANG SARAWAK
4 3 3
Ease of
transportation
5 3 4
Availability of
raw materials
4 3 2
Availability of
land and land
price
3 4 2
Labor supply
5 4 4
Availability
utilities
3 4 5
Safety
24 21 20
Total score
1 2 3
Rank
Table 2.10: Selection of site location by Concept Scoring
31
2.4 CONCLUSION OF SITE LOCATION
Based on Table 2.9 and Table 2.10 above, the scoring marks are obtained. Among the three
suggested site locations, we can conclude that the best site to build up a new chemical plant site
for the production of heptenes is in Kerteh, Terengganu. This is obtained by the evaluation that
has been done in concept screening and concept scoring from the factors considered.
There are several factors that have been considered in this evaluation. One of the main factor
that gives huge contribution in the evaluation process is the availability of raw material. Based on
Table 2.2, it shows that propylene and butenes which is the raw materials used in producing
heptenes can be obtain in Kerteh, Terengganu. A company that produces raw material propylene
for the production of heptenes is Optimal Olefins (M) Sdn.Bhd which is located in Kerteh,
Terengganu. Meanwhile, a company located in Kerteh, Terengganu that produces butenes for the
production of heptenes is Petronas Gas Berhad.
The second factor that gives higher rank towards Kerteh, Terengganu is the ease of
transportation. By referring in Table 2.1, it shows that Kerteh has the most transportation line
which are Kerteh port, Kuala Terengganu-Kuala Lumpur new highway, Kuala Terengganu airport
and Kemaman port. Furthermore, Kerteh have three mode of transportations which is air, land and
water which will gives more benefits towards the build up of chemical plant in this locations. This
gives an advantages for the export and import of product. However, the raw material of propylene
and butenes supplier both can be obtained in Kerteh which reduce the cost of transportation of raw
material.
Lastly, land price is the third factor that gives contribution to the high scoring marks for
Kerteh. From Table 2.3, it shows that the land price in Kerteh is RM 5.57 per square feet. The land
price is the cheapest compared Gebeng and Bintulu. Meanwhile, the land available in Kerteh is
the widest which is 280 acre compared to Gebeng and Bintulu. This reduces the cost required for
start-up capital for the build up of the chemical plant.
Hence, it can be concluded that Kerteh, Terengganu is the best site location for the build up
of chemical plant for production of heptenes from propylene and butenes.
32
CHAPTER 3
MATERIAL BALANCE
33
3.0 MATERIAL BALANCES ON MAJOR COMPONENT
𝑚𝑒𝑡𝑟𝑖𝑐 𝑡𝑜𝑛𝑛𝑒 ℎ𝑒𝑝𝑡𝑒𝑛𝑒

Production Rate = 20 000 yr
ℎ𝑟
𝑊𝑜𝑟𝑘𝑖𝑛𝑔 ℎ𝑜𝑢𝑟 = 8 000
𝑦𝑟
𝑚𝑒𝑡𝑟𝑖𝑐 𝑡𝑜𝑛𝑛𝑒 ℎ𝑒𝑝𝑡𝑒𝑛𝑒 1 𝑦𝑒𝑎𝑟 1 kg
Mass Balance = 20 000 x x
year 8 000 ℎ𝑟 0.001 metric tonne
𝑘𝑔
= 2 500
ℎ𝑜𝑢𝑟
𝑘𝑔 𝑘𝑚𝑜𝑙
𝑀𝑜𝑙 𝑓𝑙𝑜𝑤 𝑟𝑎𝑡𝑒 = 2 500 𝑥
ℎ𝑟 98.186 𝑘𝑔
= 25.47 kmol/hr
Component Mass Flowrate (kg/hr)
1-Hexene 0.21
1-Heptene 25.47
1-Octene 0.08
Molar Flowrates;
1. 1-Hexene
𝑘𝑔 𝑘𝑚𝑜𝑙 𝑘𝑚𝑜𝑙
ṅ1−𝐻𝑒𝑥𝑒𝑛𝑒 = 0.21 𝑋 = 17.6737
ℎ𝑟 84.1608 𝑘𝑔 ℎ𝑟
2. 1-Heptene
ṅ1−𝐻𝑒𝑝𝑡𝑒𝑛𝑒 = 25.47 𝑋 = 0.2594
ℎ𝑟 98.1861 𝑘𝑔 ℎ𝑟
3. 1-Octene
ṅ1−𝑂𝑐𝑡𝑒𝑛𝑒 = 0.08 𝑋 = 8.9792
ℎ𝑟 112.24 𝑘𝑔 ℎ𝑟
34
REACTOR 1, R-1201
Stream 3 Stream 4
26°C, 8 bar 45°C, 7.7 bar
237.78 kmol/hr 178.1 kmol/hr
R-1201
Propane : 3.56 Propane

Propylene : 71.06 Propylene
i-butane : 29.44 i-butane
n-butane : 34.41 n-butane
i-butene : 8.27 i-butene
1-butene : 90.95 1-butene
1-hexene : 0.14 1-hexene
1-heptene
1-octene
1-undecene
𝐶3 𝐻6 + 𝐶3 𝐻6 → 𝐶6 𝐻12 (𝜀1 )
1-hexene
𝐶3 𝐻6 + 𝐶4 𝐻8 → 𝐶7 𝐻14 (𝜀2 )
1-heptene
𝐶4 𝐻8 + 𝐶4 𝐻8 → 𝐶8 𝐻16 (𝜀3 )
1-octane
𝐶3 𝐻6 + 2𝐶4 𝐻8 → 𝐶11 𝐻22 (𝜀4 )

1-undecene
35
Based on experimental data ‘Production of Heptene from Propylene and 1-butene’ that conducted
on 1998 by Andrew, this process can be pushed far beyond conversion rates of 55% for 1-butene,
thus we take the conversion rates to be 51%. According to a feed-ratio based on n-butene
conversion, this conversion was modeled for each species. This is where only enough propylene
was fed to be fully consumed in each reactor specifically there is always full conversion of
propylene feed.
-------------------------------Equation 3.0
Where ni = molar flowrate out of species i

nio = molar flowrate in of species i
vi = stoichiometric coefficient of substance in reaction j
Ɛj = extent of reactant
Based on the experimental data, the conversion of propylene and butane was obtained for each
reaction that occur in the reactor. For the first reaction, the conversion of propylene was assumed
to be 59.3%. While for the second reaction, the conversion of propylene was assumed to be
around 37.3%. For third reaction, since there are only 1-butene involve in the reaction the
conversion of butane is assumed to be 16.3%. For fourth reaction, the conversion of propylene is
assumed to be 3.29%.
36
Extent of Reaction
For component:
Propylene
npropylene = 71.06 - 2Ɛ1 – Ɛ2 – Ɛ4 ------------------------------------Equation 3.1
1-butene
n1-butene = 90.45 - Ɛ2 – 2Ɛ3 - 2 Ɛ4 -------------------------------------Equation 3.2
1-hexene
n1-hexene = 0.14 + Ɛ1 ----------------------------------------------------Equation 3.3
1-heptene
n1-heptene= 0 + Ɛ2
n1-heptene= Ɛ2 -----------------------------------------------------------Equation 3.4
1-octene
n1-octene= 0 + Ɛ3
n1-octene= Ɛ3 -------------------------------------------------------------Equation 3.5
1-undecene
n1-undecene= 0 + Ɛ4
n1-undecene= Ɛ4 ----------------------------------------------------------Equation 3.6
37
• For first reaction:
𝐶3 𝐻6 + 𝐶3 𝐻6 → 𝐶6 𝐻12 (𝜀1 )
1-hexene
Assume conversion of propylene to be 59.3%
CApropylene = CAO propylene (1-XA)
CApropylene = 71.06 (1-0.593)
CApropylene = 28.92 kmol/h
From equation 3.0, we can calculate the extent reaction Ɛ1:
71.06 kmol/h – 28.92 kmol/h = 42.14 kmol/h
2Ɛ1=42.14
Ɛ1= 21.07 kmol/h
• For second reaction:
𝐶3 𝐻6 + 𝐶4 𝐻8 → 𝐶7 𝐻14 (𝜀2 )
1-heptene
CApropylene = 71.06 (1-0.3733)
38
Ɛ2=26.53 kmol/h
• For third reaction:
𝐶4 𝐻8 + 𝐶4 𝐻8 → 𝐶8 𝐻16 (𝜀3 )
1-octane
Assume conversion of 1-butene to be 16.29%
CA1-butene = CAO1-butene (1-XA)
CA1-butene = 90.95 (1-0.1629)
CA1-butene = 76.13 kmol/h
2Ɛ3=14.82 kmol/h
Ɛ3=7.41 kmol/h
39
• For fourth reaction:
𝐶3 𝐻6 + 2𝐶4 𝐻8 → 𝐶11 𝐻22 (𝜀4 )

1-undecene
CApropylene = 71.06 (1-0.0329)
Ɛ4=2.34 kmol/h
From the value of Ɛ1, Ɛ2, Ɛ3, and Ɛ4 that was obtained, the molar flowrate out for each compenent
from the reactor can be calculated.
Substitute the value of Ɛ1, Ɛ2, Ɛ3, and Ɛ4 into equation 3.1
npropylene = 71.06 - 2Ɛ1 – Ɛ2 – Ɛ4
npropylene = 71.06 – 2(21.07) – 26.53 – 2.34
npropylene = 0 kmol/hr
n1-butene = 90.95 - Ɛ2 – 2Ɛ3 - 2 Ɛ4
40
n1-butene = 90.95 – 26.53 – 2(7.41) – 2(2.34)
n1-butene = 44.92 kmol/h
n1-hexene = 0.14 + 21.07
n1-hexene = 21.21 kmol/h
n1-heptene= Ɛ2
n1-heptene= 26.53 kmol/h
n1-octene= Ɛ3
n1-octene= 7.41 kmol/h
n1-undecene= Ɛ4
n1-undecene= 2.34 kmol/h
The value obtained are the same as shown in appendix B. Therefore, the material balance is
proven.
41
TOWER, T-1201
Stream 6 Stream 7
45°C, 6.5 bar + 45°C, 5.0 bar
116.45 kmol/hr 3 kmol/hr
Propane : 3.56
Propylene :0
i-butane : 29.28
Stream 4 n-butane : 33.72
45°C, 7.7 bar
178.1 kmol/hr i-butene : 8.19
1-butene : 44.49
Propane : 3.56 1-hexene : 0.21
Propylene
i-butane
:0
: 29.44
T-1201 1-heptene
1-octene
:0
:0
n-butane : 34.41 1-undecene :0
i-butene : 8.27
1-butene : 44.94 Stream 8
151°C, 5.8 bar
1-hexene : 21.21 58.65 kmol/hr
1-heptene : 26.53
Propane :0
1-octene : 7.41
Propylene :0
1-undecene : 2.34
i-butane : 0.16
n-butane : 0.69
i-butene : 0.08
1-butene : 0.45
1-hexene : 21
1-heptene : 26.52
1-octene : 7.41
1-undecene : 2.34
42
Total Material Balance
Feed = Distillate + Bottom
F=D+B
Stream 4 = Stream 6 + Stream 7 + Stream 8
178.1 kmol/hr = D + B
Component Balances
1-butene
FXF = DXD + BXB
44.94 kmol/h = D(0.3725) + B(0.00767)
1-hexene
FXF = DXD + BXB
21.21 kmol/h = D(0.000176) + B(0.3581)
Solve both equation:
Bottom = 58.64 kmol/h
Distillate = 119.46 kmol/h
43
TOWER, T-1202 Stream 10
78°C, 4.5 bar
22.44 kmol/hr
Propane :0
Propylene :0
Stream 8
151°C, 5.8 bar i-butane : 0.16
58.65 kmol/hr n-butane : 0.69

i-butene : 0.08
1-butene : 0.45
Propane :0
1-hexene : 20.79
Propylene :0
i-butane : 0.16 T-1202 1-heptene
1-octene
: 0.27
:0
n-butane : 0.69
1-undecene :0
i-butene : 0.08
1-butene : 0.45 Stream 11
135°C, 2.5 bar
1-hexene : 21.00
1-heptene : 26.52 36.22 kmol/hr
1-octene : 7.41 Propane :0
1-undecene : 2.34 Propylene :0
i-butane :0
n-butane :0
i-butene :0
1-butene :0
1-hexene : 0.21
1-heptene : 26.26
1-octene : 7.41
1-undecene : 2.34
44
F=D+B
Stream 8 = Stream 10 + Stream 11
58.65 kmol/h = D + B
178.1 kmol/h = 116.45 kmol/h + 3 kmol/h + 58.65 kmol/h
Component Balances
1-butene
FXF = DXD + BXB
0.45 kmol/h = D(0.0201) + B(0)
D = 22.44 kmol/h
B=F–D
B = 58.65 – 22.44 = 36.21 kmol/h
Therefore:
45
TOWER , T-1203
Stream 13
107°C, 4.0 bar
25.76 kmol/hr
Propane :0
Propylene :0
Stream 11
135°C, 2.5 bar i-butane :0
36.22 kmol/hr n-butane :0

i-butene :0
1-butene :0
Propane :0
1-hexene : 0.21
Propylene :0
i-butane :0 T-1203 1-heptene
1-octene
: 25.47
: 0.08
n-butane :0
1-undecene :0
i-butene :0
1-butene :0
Stream 14
1-hexene : 0.21 154°C, 2.0 bar
1-heptene : 26.26 10.46 kmol/hr
1-octene : 7.41 Propane :0

1-undecene : 2.34 Propylene :0
i-butane :0
n-butane :0
i-butene :0
1-butene :0
1-hexene :0
1-heptene : 0.79
1-octene : 7.33
1-undecene : 2.34
46
F=D+B
Stream 11 = Stream 13 + Stream 14
36.22 kmol/h = D + B
Component Balances
1-heptene
FXF = DXD + BXB
26.26 kmol/h = D(0.9887) + B(0.0756)
1-octene
FXF = DXD + BXB
7.41 kmol/h = D(0.00311 + B(0.7008)
Solve both equation:
There are no recycle stream for this particular process.
47
CHAPTER 4
EQUIPMENT SIZING AND DESIGN
48
4.0 PROCESS FLOW DIAGRAM AND STREAM TABLE
49
50
4.1 REACTOR, R-1201
From Table 11.17: Heuristics for Reactor

Rule 2 : Dimensions of catalyst particles are 1 mm in slurry beds.
Rule 3 : The optimum proportions of stirred tank reactor are with liquid level equal to the tank
diameter, but at high pressures slimmer proportions are economical.
Rule 13 : The value of a catalyst may be to improve selectivity more than to improve the overall
reaction rate.
Optimum proportion: Liquid level = tank diameter

Tank diameter = 3 m
Thus, the liquid level is 3 m
𝜋𝐷2 𝐻
𝑉𝑜𝑙𝑢𝑚𝑒 =
4
D = 3 meter
L/H = 13 meter
𝜋(3)2 (13)
𝑉𝑜𝑙𝑢𝑚𝑒 = = 91.89𝑚3
4
It is suggest that the dimension is 10% higher from the operating dimension.
𝐷𝑚𝑎𝑥 = (1.1)(3) = 4.1𝑚
𝐻𝑚𝑎𝑥 = (1.1)(13) = 14.1𝑚
𝜋(4.1)2 (14.1)
𝑉𝑚𝑎𝑥 = = 186.16𝑚3
4
Therefore, the maximum diameter is 4.1m and the maximum height 14.1m.
51
4.2 HEAT EXCHANGER, E-1207
From Table 11.11 use the following heuristics:
Rule 1: For conservative estimate set F=0.9 for shell-and-tube exchangers with no phase changes,
q  UAFTlm . When ∆T at exchanger ends differ greatly, then check F, and reconfigure if F is less
than 0.85.
Rule 6: Minimum temperature approach is 10°C (20°F) for fluids and 5°C (10°F) for refrigerants.
Rule 7: Cooling water inlet is 30°C (90°F), maximum outlet 45°C (115°F).
Rule 8: Heat transfer coefficients for estimating purposes, W/m2°C (Btu/hr.ft2°F): water to liquid,
850 (150). U = 850 W/m2°C
Rule 9: Double pipe exchanger is competitive at duties requiring 9.3 - 18.6 m2 (100 - 200 ft2).
For heuristic analysis:
T min  Tout  Tin

 15C
[(THin  TCout )  (THout  TCin )]

Tlm 
(T  T )
ln Hin Cout
(THout  TCin )
[( 78  40)  (45  30)]

(78  40)
ln
(45  30)
23

0.929535958
 24.74C
52
Q = 146 MJ/h = 40.56 kW
Q  UAFTlm
Q
A
UFTlm
40560W

(850W / m C )(0.9)(24.74C )
2
 2.14m 2
From Table B.11.2 for the actual design, the type of this heat exchanger is double pipe heat
exchanger.
Based on the heuristic analysis, it is close to actual design since the area of heuristic analysis is
2.14m2 while the area of actual design is 2.1m2. The ∆Tmin not satisfy the Rule 6 of heuristic.
Besides, to compare using the Rule 9 from the heuristic, the actual design does not follow the
heuristic since it mention in the Table B.11.2 that this double pipe heat exchanger has 2.1m2 in
area. But from the heuristic, Rule 9 states that double pipe heat exchanger is competitive at duties
requiring 9.3 - 18.6 m2.
53
4.3 TOWER (T-1202)
T-1202
Table B.11.2 Preliminary Equipment Summary Table for Unit 1200
Equipment T-1201 T-1202 T-1203

MOC Carbon steel Carbon steel Carbon steel
Diameter (m) 1.05 1.10 0.90
Height/length (m) 20.7 26.0 27.3
Orientation Vertical Vertical Vertical
Internals 20 SS sieve plates @ 38 SS sieve plates @ 41 SS sieve plates @
24” spacing 18” spacing 18” spacing
Pressure (barg) 5.0 1.5 1.0
Stream 8 10 11
Temp (oC) 151 78 135
Pressure (bar) 5.8 4.5 2.5
Vapor fraction 0.0 0.0 0.0
Total kmol/h 58.65 22.44 36.22
Total tonne/h 5.64 1.86 3.79
Flowrates in kmol/h
Propane 0.00 0.00 0.00
Propylene 0.00 0.00 0.00
i-Butane 0.16 0.16 0.00
n-Butane 0.69 0.69 0.00
i-Butene 0.08 0.08 0.00
1-Butene 0.45 0.45 0.00
1-Hexene 21.00 20.79 0.21
1-Heptene 26.52 0.27 26.26
1-Octene 7.41 0.00 7.41
1-Undecene 2.34 0.00 2.34
54
Heuristics are used to decide on the design of the equipment. The followings are the huristics used
for this equipment.
From Table 11.13: Heuristics for Towers (Distillation and Gas Absorption):-
Rule 2: For ideal mixture, relative volatility is the ratio of vapor mixture α12 = P1*/P2*
Rule 5: Optimum reflux in the range of (1.21.5)Rmin
Rule 6: Optimum number of stages approximately 2Nmin
Rule 7: Minimum number of trays is found with the Fenske-Underwood equation
Rule 8: Minimum reflux for binary or pseudobinary mixtures
Rule 9: Use a safety factor of 10% on number of trays
Rule 14: Lmax = 53m and L/D<30
From Table 11.14: Heuristics for Tray Towers (Distillation and gas Absorption)
Rule 2: Fs = u𝜌v0.5= (1.21.5)m/s (kg/m3)0.5
Rule 3: Ptray = 0.007 bar
Rule 4: tray = 60-90%
Analysis
From Table 11.13, Rule 2;
α12 = P1*/P2*
𝐵
log10 P ∗ = A − 𝑇+𝐶
where P = vapor pressure (mmHg)
T = temperature (oC)
55
Antoine Equation Parameters:-
Substance Mol A B C Tmin Tmax

formula
1-Hexene C6H12 7.07214 1270.42 239.628 -139.76 230.88
1-Heptene C7H14 7.0899 1371.22 232.136 -118.88 264.14
For overhead,
1270.42
log10 P ∗1−𝐻𝑒𝑥𝑒𝑛𝑒 = 7.07214 − 78+239.628
P*1-Hexene = 1181.488903 mmHg
1371.22
log10 P ∗1−𝐻𝑒𝑝𝑡𝑒𝑛𝑒 = 7.0899 − 78+232.136
P*1-Heptene = 466.1754157 mmHg
𝛼 1181.488903 mmHg
𝑜𝑣ℎ𝑑=
466.1754157 mmHg
𝛼𝑜𝑣ℎ𝑑= 2.534
For bottom,
1270.42
log10 P ∗1−𝐻𝑒𝑥𝑒𝑛𝑒 = 7.07214 − 135+239.628
P*1-Hexene = 4797.216424 mmHg
1371.22
log10 P ∗1−𝐻𝑒𝑝𝑡𝑒𝑛𝑒 = 7.0899 − 135+232.136
P*1-Heptene = 2264.590995 mmHg
𝛼 4797.216424 mmHg
𝑏𝑜𝑡=
2264.590995 mmHg
𝛼𝑏𝑜𝑡= 2.118
𝛼𝑔𝑒𝑜𝑚 𝑎𝑣𝑒= (𝛼ovhd 𝛼 bot)0.5 = 2.317
56
 x  
  
  1  x  overhead 
ln 
 x 
   
  1  x  bottom 
N min 
ln 
0.9872
( )𝑜𝑣𝑒𝑟ℎ𝑒𝑎𝑑
ln( 1−0.9872
0.0079335 )
( )𝑏𝑜𝑡𝑡𝑜𝑚
1−0.0079335
𝑁min = ln 2.317
Nmin = 10.918
𝐷 1
𝑅𝑚𝑖𝑛 ( ) =
𝐹 𝛼−1
22.44 1
𝑅𝑚𝑖𝑛 ( )=
58.65 2.317 − 1
𝑅𝑚𝑖𝑛 = 1.985
Range of R = (1.21.5)Rmin
= (2.3822.978)
Ntheo = 2Nmin
57
Ntheo = 2(10.918)
Ntheo = 21.836
From Table 11.14, Rule 4; and from Table 11.14, Rule 9;
tray = 60-90%
Nactual = (21.836/0.6)(1.1) = 40.033 = 40 trays
Fs = u𝜌v0.5= (1.21.5)m/s (kg/m3)0.5
(1.2 → 1.5)
𝑢= = (0.69 → 0.87) 𝑚/𝑠
𝜌v
Mass flowrates (Stream 10) = 1860 kg/h
Volumetric flowrate, v = 0.172 m3/s
Dtower = [4𝑣/𝑢]0.5 = [(4)(0.712)/𝜋(0.69 → 0.87)]0.5 = (0.50→0.56)m
Ptray = 0.007 bar
Ptower = (Nactual)(Ptray) = (40) (0.007) = 0.28 bar
𝐿
< 30
𝐷
26𝑚
= 23.6364
1.1𝑚
58
CHAPTER 5
ECONOMIC ANALYSIS
59
5.1 CAPITAL COST ESTIMATION
5.1.1 BARE MODULE COST, CBM
1. Heat Exchanger, E-1201 A-E*
From table B.11.2

Equipment E-1201
Type Fixed TS
Duty (MJ/h) 846
Area (m2) 61.4
Shell side
- Max. temperature (℃) 45℃
- Pressure (barg) 8.0
- Phase L
- MOC Carbon steel
Tube side
- Max. temperature (℃) 40℃
- Phase L
- MOC Carbon steel
60
Purchased equipment cost, from Table A.1,
Equipment Equipment 𝐾1 𝐾2 𝐾3 Capacity Min size Max size
type description , Units
Heat Fixed tube 4.3247 -0.3030 0.1634 Area, 10 1000

exchanger 𝑚2
𝑙𝑜𝑔 𝐶𝑝0 (2002) = 𝐾1 + 𝐾2 𝑙𝑜𝑔 𝐴 + 𝐾3 (𝑙𝑜𝑔 𝐴)2

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 4.3247 + (−0.3030) 𝑙𝑜𝑔 61.4 + 0.1634(𝑙𝑜𝑔 61.4)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 4.305
𝐶𝑝0 (2002) = 20200.588
By using CEPCI:
542
𝐶𝑝 (2016) = 20200.588 × 394 = 27 788.626
To find 𝐹𝑝 :
P = 5.5 barg; from Table A.2,
Equipment Equipment 𝐶1 𝐶2 𝐶3 Pressure

Type Description Range
(barg)
Heat Fixed tube 0.03881 -0.11272 0.08183 5<P<140

Exchangers (both shell
and tube)
log 𝐹𝑝 = 𝐶1 + 𝐶2 log 𝑃 + 𝐶3 (log 𝑃)2

log 𝐹𝑝 = 0.03881 +(−0.11272) log 5.5 + 0.08183 (log 5.5)2
log 𝐹𝑝 = 0.0002104
𝐹𝑝 = 1.0005
61
From table A.3:
Identification Equipment Type Equipment Material of
Number Description Construction
2 Heat exchanger Fixed tube Cu-shell/Cu-tube
From figure A.18: 𝐹𝑚 =1.35 Thus, from table A.4:

Equipment Type Equipment 𝐵1 𝐵2
Description
Heat exchanger Fixed tube 1.63 1.66
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 20200.588(1.63 + 1.66 × 1.35 × 1.0005)
𝐶𝐵𝑀 (2002) = 78219.111
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 78219.111 × 394 = 107 600.91
** There are five total identical heat exchanger for E-1201 A-E*. Thus we have to multiply
by five
𝐶𝑝0 (2002) = 20200.588 × 5 = 101 002.94

𝐶𝐵𝑀 (2002) = 78219.111 × 5 = 391 095.56
𝐶𝐵𝑀 (2016) = 107 600.91 × 5 = 538 004.55
62
1. Heat Exchanger, E-1202
From table B.11.2

Equipment E-1202
Type Fload- head, partial vapour
Duty (MJ/h) 3827
Area (m2) 33.8
Shell side
- Max. temperature (℃) 160
- Phase Cond. Steam
- MOC Carbon steel
Tube side
- Phase L+V
- MOC Carbon steel

Equipment Equipment 𝐾1 𝐾2 𝐾3 Capacit Min size Max
type description y, Units size
Heat Floating 4.8306 -0.8509 0.3187 Area, 10 1000

exchanger head 𝑚2

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 4.8306 + (−0.8509) 𝑙𝑜𝑔 33.8 + 0.3187(𝑙𝑜𝑔 33.8)2
63
𝑙𝑜𝑔𝐶𝑝0 (2002) = 4.2746
𝐶𝑝0 (2002) = 18820.603
By using CEPCI:
542
𝐶𝑝 (2016) = 18820.603 × 394 = 25 890.27
To find 𝐹𝑝 :

(barg)
Heat Floating 0.03881 -0.11272 0.08183 5<P<140

Exchangers head(both
shell and
tube)

log 𝐹𝑝 = 0.03881 + (−0.11272) log 5.9 + 0.08183 (log 5.9)2
log 𝐹𝑝 = 0.000544
𝐹𝑝 = 1.0013
From table A.3:

2 Heat exchanger Floating head Cu-shell/Cu-tube
64
From figure A.18: 𝐹𝑚 = 1.35. Thus, from table A.4:
Description
Heat exchanger Floating head 1.63 1.66
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 18820.603(1.63 + 1.66 × 1.35 × 1.0013)
𝐶𝐵𝑀 (2002) = 72909.3843
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 72909.3843 × 394 = 100 296.66
65
From table B.11.2

Equipment E-1203
Type Fload-heat reboiler
Duty (MJ/h) 1251
Area (m2) 32.1
Shell side
- Phase Cond. Steam
- MOC Carbon steel
Tube side
- Phase Boiling liquid
- MOC Carbon steel
66


𝑙𝑜𝑔 𝐶𝑝0 (2002) = 4.8306 + (−0.8509) 𝑙𝑜𝑔 32.1 + 0.3187(𝑙𝑜𝑔 32.1)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 4.2720
𝐶𝑝0 (2002) = 18707.804
By using CEPCI:
542
𝐶𝑝 (2016) = 18707.804 × 394 = 25 735.10
To find 𝐹𝑝 :
P = 4.9barg; from Table A.2,

Type Description Range (barg)
Heat Floating head 0.03881 -0.11272 0.08183 5<P<140

and tube)

log 𝐹𝑝 = 0.03881 + (−0.11272) log 4.9 + 0.08183 (log 4.9)2
log 𝐹𝑝 = −7.4936𝐸 − 6
𝐹𝑝 = 1.0000
67
From table A.3:

Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 18707.804(1.63 + 1.66 × 1.35 × 1.0000)
𝐶𝐵𝑀 (2002) = 72417.9093
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 72417.9093 × 394 = 99 620.58
68
From table B.11.2

Equipment E-1204
Type Fixed TC condenser
Duty (MJ/h) 3577
Area (m2) 128.5
Shell side
- Phase Cond. Vapour
- MOC Carbon steel
Tube side
- Phase L
- MOC Carbon steel


exchanger 𝑚2

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 4.3247 + (−0.3030) 𝑙𝑜𝑔 128.5 + 0.1634(𝑙𝑜𝑔 128.5)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 4.4124
𝐶𝑝0 (2002) = 25847.548
69
By using CEPCI:
542
𝐶𝑝 (2016) = 25847.548 × 394 = 35 556.78
To find 𝐹𝑝 :

(barg)
Heat Fixed tube 0.03881 -0.11272 0.08183 5<P<140

and tube)

log 𝐹𝑝 = 0.03881 + (−0.11272) log 3.5 + 0.08183(log 3.5)2
log 𝐹𝑝 = 0.001705
𝐹𝑝 = 1.0039
From table A.3:

2 Heat exchanger Fixed tube Cu-shell/Cu-tube
70
Description
Heat exchanger Fixed tube 1.63 1.66
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 25847.548(1.63 + 1.66 × 1.35 × 1.0039)
𝐶𝐵𝑀 (2002) = 100281.7633
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 100281.7633 × 394 = 137 951.05
71
From table B.11.2

Equipment E-1205
Type Fload- head reboiler
Duty (MJ/h) 2184
Area (m2) 21.1
Shell side
- Phase Cond. Steam
- MOC Carbon steel
Tube side
- MOC Carbon steel
72


𝑙𝑜𝑔 𝐶𝑝0 (2002) = 4.8306 + (−0.8509) 𝑙𝑜𝑔21.1 +0.3187(𝑙𝑜𝑔 21.1)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 4.2627
𝐶𝑝0 (2002) = 18309.644
By using CEPCI:
542
𝐶𝑝 (2016) = 18309.644 × 394 = 25 187.38
To find 𝐹𝑝 :

Type Description Range (barg)
Heat Floating head 0 0 0 P<5

Exchangers (both shell and
tube)

log 𝐹𝑝 = 0 +(0)log 3.25 + 0 (log 3.25)2
log 𝐹𝑝 = 0
𝐹𝑝 = 1
73
From table A.3:

Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 18309.644(1.63 + 1.66 × 1.35 × 1)
𝐶𝐵𝑀 (2002) = 70876.632
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 70876.632 × 394 = 97 500.34
74
From table B.11.2

Equipment E-1206
Type Fixed-TS condenser
Duty (MJ/h) 2630
Area (m2) 20
Shell side
- MOC Carbon steel
Tube side
- Phase L
- MOC Carbon steel
75

exchanger 𝑚2

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 4.3247 + (−0.3030) 𝑙𝑜𝑔 20 + 0.1634(𝑙𝑜𝑔 20)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 4.2071
𝐶𝑝0 (2002) = 16109.114
By using CEPCI:
542
𝐶𝑝 (2016) = 16109.114 × 394 = 22 160.25
To find 𝐹𝑝 :
P = 2 barg; from Table A.2,

(barg)
Heat Fixed tube 0 0 0 P<5

and tube)

log 𝐹𝑝 = 0 +0 log 2 + 0 (log 2)2
log 𝐹𝑝 = 0
𝐹𝑝 = 1
76
From table A.3:
2 Heat exchanger Fixed tube CS-shell/CS-tube
From figure A.18: 𝐹𝑚 =1.35. Thus, from table A.4:

Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 16109.114(1.63 + 1.66 × 1.35 × 1)
𝐶𝐵𝑀 (2002) = 62358.380
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 62358.380 × = 85 782.34
394
77
From table B.11.2

Equipment E-1207
Type Double pipe
Duty (MJ/h) 146
Area (m2) 2.1
Shell side
- Phase L
- MOC Carbon steel
Tube side
- Phase L
- MOC Carbon steel
78
Heat Double 3.3444 0.2745 -0.0472 Area, 1 10

exchanger pipe 𝑚2

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.3444 + (0.2735) 𝑙𝑜𝑔 2.1 + (−0.0472)(𝑙𝑜𝑔 2.1)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 3.4276
𝐶𝑝0 (2002) = 2676.8647
By using CEPCI:
542
𝐶𝑝 (2016) = 2676.8647 × 394 = 3 682.38
To find 𝐹𝑝 :

(barg)
Heat Double pipe 0 0 0 P<5

Exchangers

log 𝐹𝑝 = 0 +0 log 2 + 0 (log 2)2
log 𝐹𝑝 = 0
𝐹𝑝 = 1
79
From table A.3:
1 Heat exchanger Double pipe CS-shell/CS-tube
From figure A.18: 𝐹𝑚 = 1. Thus, from table A.4:

Description
Heat exchanger Double pipe 1.74 1.55
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 2676.8647(1.74 + 1.55 × 1 × 1)
𝐶𝐵𝑀 (2002) = 8806.885
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 8806.885 × 394 = 12 115.06
80
From table B.11.2

Equipment E-1208
Type Fload-head reboiler
Duty (MJ/h) 2026
Area (m2) 75.3
Shell side
- Phase Cond. Steam
- MOC Carbon steel
Tube side
- MOC Carbon steel
81

𝑙𝑜𝑔 𝐶𝑝0 = 𝐾1 + 𝐾2 𝑙𝑜𝑔 𝐴 + 𝐾3 (𝑙𝑜𝑔 𝐴)2

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 4.8306 + (−0.8509) 𝑙𝑜𝑔 75.3 + 0.3187(𝑙𝑜𝑔 75.3)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 4.3562
𝐶𝑝0 (2002) = 22709.6839
By using CEPCI:
542
𝐶𝑝 (2016) = 22709.6839 × 394 = 31 240.22
To find 𝐹𝑝 :

(barg)

and tube)

log 𝐹𝑝 = 0 +0 log 3 + 0 (log 3)2
log 𝐹𝑝 = 0
𝐹𝑝 = 1
82
From table A.3:
2 Heat exchanger Fixed tube CS-shell/CS-tube
From figure A.18: 𝐹𝑚 =1.35. Thus, from table A.4:

Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 22709.6839(1.63 + 1.66 × 1.35 × 1)
𝐶𝐵𝑀 (2002) = 87909.186
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 87909.186 × 394 = 120 930.91
83
8. Heat exchanger, E-1209
From table B.11.2

Equipment E-1209
Type Fixed TS condenser
Duty (MJ/h) 2146
Area (m2) 9.7
Shell side
- MOC Carbon steel
Tube side
- Phase L
- MOC Carbon steel
84

exchanger 𝑚2

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 4.3247 + (−0.3030) 𝑙𝑜𝑔 9.7 + 0.1634(𝑙𝑜𝑔 9.7)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 4.1848
𝐶𝑝0 (2002) = 15304.3102
By using CEPCI:
542
𝐶𝑝 (2016) = 15304.3102 × 394 = 21 053.14
To find 𝐹𝑝 :

(barg)

and tube)

log 𝐹𝑝 = 0 +0 log 1.75 + 0 (1.75)2
log 𝐹𝑝 = 0
𝐹𝑝 = 1
85
From table A.3:
2 Heat exchanger Floating head CS-shell/CS-tube

Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 15304.3102(1.63 + 1.66 × 1.35 × 1)
𝐶𝐵𝑀 (2002) = 59242.985
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 59242.985 × 394 = 81 496.70
86
From table B.11.2

Equipment E-1210
Type Double pipe
Duty (MJ/h) 372
Area (m2) 3.9
Shell side
- Phase L
- MOC Carbon steel
Tube side
- Phase L
- MOC Carbon steel
87
Heat Double pipe 3.3444 0.2745 -0.0472 Area, 1 10

exchanger 𝑚2

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.3444 + 0.2745 (𝑙𝑜𝑔 3.9) + (−0.0472)(𝑙𝑜𝑔3.9)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 3.4902
𝐶𝑝0 (2002) = 3091.4168
By using CEPCI:
542
𝐶𝑝 (2016) = 3091.4168 × 394 = 4 252.66
To find 𝐹𝑝 :

(barg)

Exchangers

log 𝐹𝑝 = 0 +0 log 1.65 + 0 (log 1.65)2
log 𝐹𝑝 = 0
𝐹𝑝 = 1
88
From table A.3:

Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 3091.4168(1.74 + 1.55 × 1 × 1)
𝐶𝐵𝑀 (2002) = 10170.761
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 10170.761 × 394 = 13 991.25
89
From table B.11.2

Equipment E-1211
Type Double pipe
Duty (MJ/h) 330
Area (m2) 2.4
Shell side
- Phase L
- MOC Carbon steel
Tube side
- Phase L
- MOC Carbon steel
90
Heat Double 3.3444 0.2745 -0.0472 Area, 1 10

exchanger pipe 𝑚2
𝑙𝑜𝑔 𝐶𝑝0 = 𝐾1 + 𝐾2 𝑙𝑜𝑔 𝐴 + 𝐾3 (𝑙𝑜𝑔 𝐴)2 (A.1)

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.3444 + 0.2745(𝑙𝑜𝑔 2.4) + (−0.0472)(𝑙𝑜𝑔2.4)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 3.4419
𝐶𝑝0 (2002) = 2766.590
By using CEPCI:
542
𝐶𝑝 (2016) = 2766.590 × 394 = 3 805.82
To find 𝐹𝑝 :

(barg)

Exchangers

log 𝐹𝑝 = 0 +0 log 1.65 + 0 (log 1.65)2
log 𝐹𝑝 = 0
𝐹𝑝 = 1
91
From table A.3:

Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 2766.590(1.74 + 1.55 × 1 × 1)
𝐶𝐵𝑀 (2002) = 9102.081
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 9102.081 × 394 = 12 521.14
92
11. Pump, P-1201 (A/B)
From table B.11.2

Equipment P-1201(A/B)
MOC Carbon steel
Power (shaft) (kW) 6.75
Efficiency 40%
Type/drive Centrifugal/electric
Temperature (°C) 25
Pressure in 2.97
Pressure out 9.00
𝑎𝑐𝑡𝑢𝑎𝑙 𝑝𝑜𝑤𝑒𝑟 6.75𝑘𝑊

𝐴= = = 16.88
𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 0.4
93
Pump Centrifugal 3.3892 0.0536 0.1538 Shaft 1 300

power,
kW

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.3892 + 0.0536 (𝑙𝑜𝑔 16.88) + 0.1538(𝑙𝑜𝑔16.88)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 3.6867
𝐶𝑝0 (2002) = 4860.468
By using CEPCI:
542
𝐶𝑝 (2016) = 4860.468 × 394 = 6 686.23
To find 𝐹𝑝 :
P = 9barg; from Table A.2,

(barg)
Heat Centrifugal 0 0 0 P<10

Exchangers

log 𝐹𝑝 = 0 +0 log 9 + 0 (log 9)2
log 𝐹𝑝 = 0
𝐹𝑝 = 1
94
From table A.3:
38 Pump Centrifugal Carbon steel

Description
Pump Centrifugal 1.89 1.35
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 4860.468(1.89 + 1.35 × 1.6 × 1)
𝐶𝐵𝑀 (2002) = 19684.895
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 19684.895 × 394 = 27 079.22
95
12. Pump, P-1202 A-G*
From table B.11.2

MOC Carbon steel
Efficiency 70%
Pressure in 8.00
Pressure out 9.00

𝐴= = = 7.33


power,
kW

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.3892 + 0.0536 𝑙𝑜𝑔 7.33 + 0.1538(𝑙𝑜𝑔7.33)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 3.5507
𝐶𝑝0 (2002) = 3553.857
96
By using CEPCI:
542
𝐶𝑝 (2016) = 3553.857 × 394 = 4 888.81
P<10 so, 𝐹𝑝 = 1
From table A.3:


Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 3553.857 (1.89 + 1.35 × 1.6 × 1)
𝐶𝐵𝑀 (2002) = 14393.121
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 14393.121 × 394 = 19 799.67
** There are five total identical pump for P-1202. Thus we have to multiply by five
𝐶𝑝0 (2002) = 3553.857 × 5 = 17 769.29
𝐶𝐵𝑀 (2002) = 14393.121 × 5 =71 965.61
𝐶𝐵𝑀 (2016) = 19 799.67 × 5 = 98 998.35
97
13. Pump, P-1203 A/B
From table B.11.2

MOC Carbon steel
Efficiency 40%
Pressure in 5.50
Pressure out 7.55

𝐴= = = 6.88


power,
kW

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.3892 + 0.0536 𝑙𝑜𝑔 6.88 + 0.1538(𝑙𝑜𝑔6.88)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 3.5420
𝐶𝑝0 (2002) = 3483.323
98
By using CEPCI:
542
𝐶𝑝 (2016) = 3483.323 × 394 = 4 791.78
P<10 so, 𝐹𝑝 = 1
From table A.3:


Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 3483.323(1.89 + 1.35 × 1.6 × 1)
𝐶𝐵𝑀 (2002) = 14107.458
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 14107.458 × 394 = 19 406.71
99
14. Pump, P-1204 A/B
From table B.11.2

MOC Carbon steel
Efficiency 40%
Pressure in 2.50
Pressure out 4.00

𝐴= = = 1.65


power,
kW

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.3892 + 0.0536 𝑙𝑜𝑔 1.65 + 0.1538(𝑙𝑜𝑔1.65)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 3.4081
𝐶𝑝0 (2002) = 2559.362
100
By using CEPCI:
542
𝐶𝑝 (2016) = 2559.362 × 394 = 3 520.75
P<10 so, 𝐹𝑝 = 1
From table A.3:


Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 2559.362(1.89 + 1.35 × 1.6 × 1)
𝐶𝐵𝑀 (2002) = 10365.416
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 10365.416 × 394 = 14 259.02
101
15. Pump, P-1205 A/B
From table B.11.2

MOC Carbon steel
Efficiency 40%
Pressure in 2.00
Pressure out 4.47

𝐴= = = 5.38


power,
kW

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.3892 + 0.0536 𝑙𝑜𝑔 5.38 + 0.1538(𝑙𝑜𝑔5.38)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 3.5104
𝐶𝑝0 (2002) = 3239.030
102
By using CEPCI:
542
𝐶𝑝 (2016) = 3239.030 × 394 = 4 455.72
P<10 so, 𝐹𝑝 = 1
From table A.3:


Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 3239.030(1.89 + 1.35 × 1.6 × 1)
𝐶𝐵𝑀 (2002) = 13118.072
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 13118.072 × 394 = 18 045.67
103
16. Pump, P-1206 A/B
From table B.11.2

MOC Carbon steel
Efficiency 40%
Pressure in 1.50
Pressure out 4.00

𝐴= = = 4.83


power,
kW

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.3892 + 0.0536 𝑙𝑜𝑔 4.83 + 0.1538(𝑙𝑜𝑔4.83)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 3.498
𝐶𝑝0 (2002) = 3146.333
104
By using CEPCI:
542
𝐶𝑝 (2016) = 3146.333 × 394 = 4 328.20
P<10 so, 𝐹𝑝 = 1
From table A.3:


Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 3146.333(1.89 + 1.35 × 1.6 × 1)
𝐶𝐵𝑀 (2002) = 12742.649
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 12742.649 × 394 = 17 529.23
105
17. Reactor, R-1201
From table B.11.2

Reactor R-1201
MOC Carbon steel
Diameter (m) 3.00
Height/ length (m) 13.00
Orientation Vertical
Internals Reactor split into 5 equal section
Pressure (barg) 7.0
𝜋𝐷2 𝐿 𝜋(3)2 13
𝑉𝑜𝑙𝑢𝑚𝑒 = = = 91.89𝑚3
4 4

Reactors Jacketed 3.3496 0.7235 0.0025 Volume, 5 45

nonagitated 𝑚3

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.3496 + 0.7235 𝑙𝑜𝑔 91.89 + 0.1634(𝑙𝑜𝑔 91.89)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 5.400
𝐶𝑝0 (2002) = 251094.484
106
By using CEPCI:
542
𝐶𝑝 (2016) = 251094.484 × 394 = 345 414.24
𝐹𝐵𝑀 = 4.0 from Table A.7

𝐶𝐵𝑀 (2002) = 𝐶𝑝0 × 𝐹𝐵𝑀
𝐶𝐵𝑀 (2002) = 251094.484 × 4 = 1004377.936
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 1004377.936 × 394 = 1 381 656.96
107
18. Tower, T-1201
From table B.11.2

Reactor R-1201
MOC Carbon steel
Diameter (m) 1.05
Internals 20 SS sieves plate @ 24’’ spacing
Pressure (barg) 5.0
𝜋𝐷2 𝐿 𝜋(1.05)2 20.7

𝑉𝑜𝑙𝑢𝑚𝑒 = = = 17.92𝑚3
4 4

Process Vertical 3.4974 0.4485 0.1074 Volume, 0.3 520

vessels 𝑚3

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.4974 + 0.4485 𝑙𝑜𝑔 17.92 + 0.1074(𝑙𝑜𝑔17.92)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 4.228
𝐶𝑝0 (2002) =16913.444
108
By using CEPCI:
542
𝐶𝑝 (2016) = 16913.444 × 394 = 23 266.72
To find 𝐹𝑝 :
P = 5barg
(𝑃 + 1)𝐷
+ 0.00315
2[850 − 0.6(𝑃 + 1)]
𝐹𝑃,𝑣𝑒𝑠𝑠𝑒𝑙 =
0.0063
(5 + 1)1.05
+ 0.00315
2[850 − 0.6(5 + 1)]
𝐹𝑃,𝑣𝑒𝑠𝑠𝑒𝑙 = = 1.091
0.0063
From table A.3:

18 Process vessels Horizontal, vertical CS

(including towers)
From figure A.18: 𝐹𝑚 =1. Thus, from table A.4:

Description
Process vessels Vertical 2.25 1.82
(including towers)
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 16913.444(2.25 + 1.82 × 1 × 1.091)
𝐶𝐵𝑀 (2002) = 71638.922
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 71638.922 × 394 = 98 548.97
109
Tray for T-1201
𝜋𝐷2 𝜋(1.05)2
𝐴𝑟𝑒𝑎 = = = 0.8659𝑚2
4 4
Trays Sieve 2.9949 0.4465 0.3961 Area, 0.07 12.30

𝑚2

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 2.9949 + 0.4465 𝑙𝑜𝑔0.8659 +0.3961(𝑙𝑜𝑔0.8659)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 2.9685
𝐶𝑝0 (2002) = 930.097
By using CEPCI:
542
𝐶𝑝 (2016) = 930.097 × 394 = 1 279.47
From table A.6:

61 Trays and demister Sieve and valve trays SS

pads
From figure A.19: 𝐹𝐵𝑚 =1.8.

𝐶𝐵𝑀 (2002) = 𝐶𝑝0 𝑁𝐹𝐵𝑚 𝐹𝑞
𝐶𝐵𝑀 (2002) = 930.097 × 20 × 1.8 × 1
𝐶𝐵𝑀 (2002) = 33483.492
110
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 33483.492 × 394 = 46 061.05
CBM total = CBM tower + CBM tray
CBM total(2002) = 71638.922 + 33483.492 = 105122.414
CBM total(2016) = 98 548.97 + 46 061.05 = 144 610.02
111
19. Tower, T-1202
From table B.11.2

Tower T-1202
MOC Carbon steel
Diameter (m) 1.10
Pressure (barg) 1.5
𝜋𝐷2 𝐿 𝜋(1.1)2 26
𝑉𝑜𝑙𝑢𝑚𝑒 = = = 24.71𝑚3
4 4


vessels 𝑚3

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.4974 + 0.4485 𝑙𝑜𝑔 24.71 + 0.1074(𝑙𝑜𝑔24.71)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 4.3305
𝐶𝑝0 (2002) =21402.394
112
By using CEPCI:
542
𝐶𝑝 (2016) = 21402.394 × 394 = 29 441.87
To find 𝐹𝑝 :
P = 1.5barg
(𝑃 + 1)𝐷
+ 0.00315
2[850 − 0.6(𝑃 + 1)]
0.0063
(1.5 + 1)1.1
+ 0.00315
2[850 − 0.6(1.5 + 1)]
0.0063
From table A.3:


(including towers)

Description
(including towers)
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 21402.394(2.25 + 1.82 × 1 × 0.7572)
𝐶𝐵𝑀 (2002) = 77651.019
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 77651.019 × 394 = 106 819.42
113
Tray for T-1201
𝜋𝐷2 𝜋(1.1)2
𝐴𝑟𝑒𝑎 = = = 0.9503𝑚2
4 4

Trays Sieve 2.9949 0.4465 0.3961 Area, 0.07 12.30

𝑚2

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 2.9949 + 0.4465 𝑙𝑜𝑔0.9503 +0.3961(𝑙𝑜𝑔0.9503)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 2.9852
𝐶𝑝0 (2002) = 966.515
By using CEPCI:
542
𝐶𝑝 (2016) = 966.515 × = 1 329.57
394
From table A.6:


pads

𝐶𝐵𝑀 (2002) = 966.515 × 38 × 1.8 × 1
𝐶𝐵𝑀 (2002) = 66109.626
114
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 66109.626 × 394 = 90 942.68
CBM total(2002) = 77651.019 + 66109.626 = 143760.645
CBM total(2016) = 106 819.42 + 90 942.68 = 197 762.10
115
20. Tower, T-1203
From table B.11.2

Tower T-1203
MOC Carbon steel
Diameter (m) 0.90
Pressure (barg) 1.0
𝜋𝐷2 𝐿 𝜋(0.9)2 27.3

𝑉𝑜𝑙𝑢𝑚𝑒 = = = 17.37𝑚3
4 4


vessels 𝑚3

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.4974 + 0.4485 𝑙𝑜𝑔 17.37 + 0.1074(𝑙𝑜𝑔17.37)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 4.2185
𝐶𝑝0 (2002) =16539.986
116
By using CEPCI:
542
𝐶𝑝 (2016) = 16539.986 × 394 = 22 752.98
To find 𝐹𝑝 :
P = 1.0barg
(𝑃 + 1)𝐷
+ 0.00315
2[850 − 0.6(𝑃 + 1)]
0.0063
(1.0 + 1)0.9
+ 0.00315
2[850 − 0.6(1.0 + 1)]
0.0063
From table A.3:


(including towers)

Description
(including towers)
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 16539.986(2.25 + 1.82 × 1 × 0.6683)
𝐶𝐵𝑀 (2002) = 57332.798
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 57332.798 × 394 = 78 868.98
117
Tray for T-1201
𝜋𝐷2 𝜋(1.0)2
𝐴𝑟𝑒𝑎 = = = 0.7854𝑚2
4 4

Trays Sieve 2.9949 0.4465 0.3961 Area, 0.07 12.30

𝑚2

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 2.9949 + 0.4465 𝑙𝑜𝑔0.7854 +0.3961(𝑙𝑜𝑔0.7854)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 2.9524
𝐶𝑝0 (2002) = 896.226
By using CEPCI:
542
𝐶𝑝 (2016) = 896.226 × = 1 232.88
394
From table A.6:


pads

𝐶𝐵𝑀 (2002) = 896.226 × 41 × 1.8 × 1
𝐶𝐵𝑀 (2002) = 66141.479
118
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 66141.479 × 394 = 90 986.50
CBM total(2002) = 57332.798 + 66141.479 = 123474.277
CBM total(2016) = 78 868.98 + 90 986.50 = 169 855.48
119
21. Vessel, V-1201
From table B.11.2

Vessel V-1201
MOC Carbon steel
Diameter (m) 1.40
Orientation Horizontal
Internals -
Pressure (barg) 20.0
𝜋𝐷2 𝐿 𝜋(1.4)2 4.2

𝑉𝑜𝑙𝑢𝑚𝑒 = = = 6.47𝑚3
4 4

Process Horizontal 3.5565 0.3776 0.0905 Volume, 0.1 628

vessels 𝑚3

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.5565 + 0.3776𝑙𝑜𝑔 6.47 + 0.0905(𝑙𝑜𝑔6.47)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 3.9222
𝐶𝑝0 (2002) = 8359.144
By using CEPCI:
542
𝐶𝑝 (2016) = 8359.144 × 394 = 11 499.13
120
To find 𝐹𝑝 :
P = 20barg
(𝑃 + 1)𝐷
+ 0.00315
2[850 − 0.6(𝑃 + 1)]
0.0063
(20 + 1)1.4
+ 0.00315
2[850 − 0.6(20 + 1)]
0.0063
From table A.3:


(including towers)

Description
Process vessels Horizontal 1.49 1.52
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 8359.144(1.49 + 1.52 × 1 × 3.286)
𝐶𝐵𝑀 (2002) = 54211.821
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 54211.821 × 394 = 74 575.65
121
22. Vessel, V-1202
From table B.11.2

Vessel V-1202
MOC Carbon steel
Diameter (m) 1.90
Internals -
Pressure (barg) 5.0
𝜋𝐷2 𝐿 𝜋(1.9)2 5.7

𝑉𝑜𝑙𝑢𝑚𝑒 = = = 16.16𝑚3
4 4


vessels 𝑚3

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.5565 + 0.3776𝑙𝑜𝑔 16.16 + 0.0905(𝑙𝑜𝑔16.16)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 4.145
𝐶𝑝0 (2002) = 13962.850
By using CEPCI:
542
𝐶𝑝 (2016) = 13962.850 × 394 = 19 207.78
122
To find 𝐹𝑝 :
P = 5.0 barg
(𝑃 + 1)𝐷
+ 0.00315
2[850 − 0.6(𝑃 + 1)]
0.0063
(5 + 1)1.9
+ 0.00315
2[850 − 0.6(5 + 1)]
0.0063
From table A.3:


(including towers)

Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 13962.850(1.49 + 1.52 × 1 × 1.569)
𝐶𝐵𝑀 (2002) = 54103.373
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 54103.373 × 394 = 74 426.47
123
23. Vessel, V-1203
From table B.11.2

Vessel V-1203
MOC Carbon steel
Diameter (m) 1.10
Internals -
Pressure (barg) 4.5
𝜋𝐷2 𝐿 𝜋(1.1)2 3.3

𝑉𝑜𝑙𝑢𝑚𝑒 = = = 3.14𝑚3
4 4


vessels 𝑚3

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.5565 + 0.3776𝑙𝑜𝑔 3.14 + 0.0905(𝑙𝑜𝑔3.14)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 3.766
𝐶𝑝0 (2002) = 5840.3656
124
By using CEPCI:
542
𝐶𝑝 (2016) = 5840.3656 × 394 = 8 034.21
To find 𝐹𝑝 :
P = 4.5 barg
(𝑃 + 1)𝐷
+ 0.00315
2[850 − 0.6(𝑃 + 1)]
0.0063
(4.5 + 1)1.1
+ 0.00315
2[850 − 0.6(4.5 + 1)]
0.0063
From table A.3:


(including towers)

Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 5840.3656(1.49 + 1.52 × 1 × 1.0671)
𝐶𝐵𝑀 (2002) = 18175.120
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 18175.120 × 394 = 25 002.32
125
24. Valve, V-1204
From table B.11.2

Vessel V-1204
MOC Carbon steel
Diameter (m) 0.95
Internals -
Pressure (barg) 1.0
𝜋𝐷2 𝐿 𝜋(0.95)2 2.85

𝑉𝑜𝑙𝑢𝑚𝑒 = = = 2.02𝑚3
4 4


vessels 𝑚3

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.5565 + 0.3776𝑙𝑜𝑔 2.02 + 0.0905(𝑙𝑜𝑔2.02)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 3.6802
𝐶𝑝0 (2002) = 4788.934
126
By using CEPCI:
542
𝐶𝑝 (2016) =4788.934× 394 = 6 587.82
To find 𝐹𝑝 :
P = 1.0 barg
(𝑃 + 1)𝐷
+ 0.00315
2[850 − 0.6(𝑃 + 1)]
0.0063
(1 + 1)0.95
+ 0.00315
2[850 − 0.6(1 + 1)]
0.0063
From table A.3:


(including towers)

Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 4788.934(1.49 + 1.52 × 1 × 0.6777)
𝐶𝐵𝑀 (2002) = 12068.285
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 12068.285 × 394 = 16 601.55
127
25. Valve, V-1205
From table B.11.2

Vessel V-1205
MOC Carbon steel
Diameter (m) 0.92
Internals -
Pressure (barg) 0.5
𝜋𝐷2 𝐿 𝜋(0.92)2 2.75

𝑉𝑜𝑙𝑢𝑚𝑒 = = = 1.83𝑚3
4 4


vessels 𝑚3

𝑙𝑜𝑔 𝐶𝑝0 (2002) = 3.5565 + 0.3776𝑙𝑜𝑔 1.83 + 0.0905(𝑙𝑜𝑔1.83)2
𝑙𝑜𝑔𝐶𝑝0 (2002) = 3.6618
𝐶𝑝0 (2002) = 4590.011
128
By using CEPCI:
542
𝐶𝑝 (2016) =4590.011× 394 = 6 314.18
To find 𝐹𝑝 :
P = 0.5 barg
(𝑃 + 1)𝐷
+ 0.00315
2[850 − 0.6(𝑃 + 1)]
0.0063
(0.5 + 1)0.92
+ 0.00315
2[850 − 0.6(0.5 + 1)]
0.0063
From table A.3:


(including towers)

Description
𝐶𝐵𝑀 (2002) = 𝐶𝑝0 (𝐵1 + 𝐵2 𝐹𝑀 𝐹𝑝 )

𝐶𝐵𝑀 (2002) = 4590.011(1.49 + 1.52 × 1 × 0.6290)
𝐶𝐵𝑀 (2002) = 11227.451
By using CEPCI:
542
𝐶𝐵𝑀 (2016) = 11227.4515 × 394 = 15 444.87
129
YEAR CHEMICAL ENGINEERING PLANT
COST INDEX (CEPCI)
2002 396
2003 402
2004 444
2005 468
2006 500
2007 525
2008 575
2009 521
2010 551
2011 582
2012 585
2013 567
2014 576
2015 557
2016 542
[1] Table of Chemical Engineering Plant Cost Index (CEPCI) from 2002-2016
130
RESULTS OF CAPITAL COST ESTIMATE
EQUIPMENT 𝑪𝑷 (2002),$ 𝑪𝑩𝑴 (2002),$ 𝑪𝑩𝑴 (𝟐𝟎𝟏𝟔), $

E-1201(A-E*) 101 002.94 391 095.56 538 004.55
E-1202 18820.603 72909.3843 100 296.66
E-1203 18707.804 72417.9093 99 620.58
E-1204 25847.548 100281.763 137 951.05
E-1205 18309.644 70876.632 97 500.34
E-1206 16109.114 62358.380 85 782.34
E-1207 2676.865 8806.885 12 115.06
E-1208 22709.684 87909.186 120 930.91
E-1209 15304.310 59242.985 81 496.70
E-1210 3091.417 10170.761 13 991.25
E-1211 2766.590 9102.081 12 521.14
P-1201 (A/B) 4860.468 19684.895 27 079.22
P-1202 (A-E) 17 769.29 71 965.61 98 998.35
P-1203 (A/B) 3483.323 14107.458 19 406.71
P-1204 (A/B) 2559.362 10365.416 14 259.02
P-1205 (A/B) 3239.030 13118.072 18 045.67
P-1206 (A/B) 3146.333 12742.649 17 529.23
R-1201 251094.484 1004377.936 1 381 656.96
T-1201 Tower: 16913.444 71638.922 98 548.97
Tray: 930.097 33483.492 46 061.05
T-1202 Tower: 21402.394 77651.019 106 819.42
Tray: 966.515 66109.626 90 942.68
T-1203 Tower: 16539.986 57332.798 78 868.98
Tray: 896.226 66141.479 90 986.50
V-1201 8359.144 54211.821 74 575.65
V-1202 13962.850 54103.373 74 426.47
V-1203 5840.366 18175.120 25 002.32
131
V-1204 4788.934 12068.285 16 601.55
V-1205 4590.011 11227.451 15 444.87
Total 626 688.80 2 613 676.948 3 595 464.20
132
5.1.2 FIXED CAPITAL INVESTMENT (GRASSROOT)
CALCULATION OF TOTAL MODULE COST
CTM = 1.18 ∑ CBM
CTM = 1.18 ($3 595 464.20)
CTM =$4 242 647.76
𝑅𝑀 4.09
Conversion $ into RM: $4 242 647.76× = RM 17 267 576.58
$1.00
CALCULATION OF GRASSROOTS COST
CGR = CTM + 0.5 ∑CBM (TOTAL) [2]
CGR =$4 242 647.76+ 0.5 ($3 595 464.20)
CGR =$6 040 379.86
𝑅𝑀 4.07
Conversion $ into RM: $6 040 379.86× = RM 24 584 346.03
$1.00
133
5.2 MANUFACTURING COST ESTIMATION
5.2.1 COST OF RAW MATERIALS, CRM
Assume stream factor, SF = 0.91
(A) Propylene
Feed flowrate (kmol/h) 71.06

Molecular weight (kg/kmol) 42.08
Market price (2016), RM 4.326 / kg
71.06 𝑘𝑚𝑜𝑙 42.08 𝑘𝑔 𝑅𝑀 4.326 24 ℎ 365 𝑑

CRW = 𝑥 𝑥 𝑥 𝑥
ℎ 𝑘𝑚𝑜𝑙 𝑘𝑔 1𝑑 1 𝑦𝑟
= RM 113 316 083.50 / year
(B) Butene
Feed flowrate (kmol/h) 90.95

Molecular weight (kg/kmol) 56.11
Market price (2016), RM 2.465 / kg
90.95 𝑘𝑚𝑜𝑙 56.11 𝑘𝑔 𝑅𝑀 2.465 24 ℎ 365 𝑑

CRW = 𝑥 𝑥 𝑥 𝑥
ℎ 𝑘𝑚𝑜𝑙 𝑘𝑔 1𝑑 1 𝑦𝑟
= RM 110 195 536.10 / year
CRW, TOTAL = [CRW (propylene) + CRW (benzene)] x SF

= [RM 113 316 083.50 / year + RM 110 195 536.10 / year] x 0.91
= RM 223 511 619.60 / year
134
5.2.2 COST OF OPERATING LABOUR, COL
(A) Labours Requirement
There are 365 days in a year where one year is equals to 52 weeks. Labours will be given 3
weeks off for vacation and other purposes. Hence, the total weeks that a labour works for one
year are 49 weeks. Within a week, the labour will work for 5 days. These 5 days is equals to 5
shifts/week. Hence;
49 weeks 5 shifts 245 shifts

× =
1 year 1 week year
(B) Chemical Plant Requirement
A chemical plant needs to operate 24 hours, hence the working capacity of the plant is 365 days
in a year. In one day, there are 3 shifts. Hence;
365 days 3 shifts 1095 shifts

× =
1 year 1 day year
As a conclusion, a chemical plant requires:
1095 shifts 1 year operators

× = 4.5
1 year 245 shifts labours
The equation for the operating labor requirement for a chemical processing plant is given by:
NOL= (6.29 + 31.7 P2 + 0.23 Nnp) 0.5
135
Where;
NOL = Number of operators per shift
P = Number of processing step involving the handling of particulate solids
Nnp = Number of nonparticulate processing steps handling steps includes compression, heating
and cooling, mixing, and reaction
Where; P = 0,
Equipment type Number of equipment Nnp
Heat exchanger 11 11
Vessel 5 -
Tower 3 3
Reactor 1 1
Pump 6 -
Fired heater 0 0
Compressors 0 0
Total 15
*pumps and vessels are not counted in evaluating Nnp

Hence;
NOL= (6.29 + 31.7 P2 + 0.23 Nnp) 0.5
NOL= [6.29 + 31.7(0)2 + 0.23(15)] 0.5
NOL= 3.12 ≈ 4 number of operator per shifts
136
Calculation of Cost of Operating Labours (COL)
The operating labor, COL = NOL × 4.5 operators
Hence; the operating labor, COL = 4× 4.5
The operating labor, COL = 17.8 operators ≈ 18 operators
RM4 8000 ℎ
x x 18 = 𝐑𝐌𝟓𝟕𝟔𝟎𝟎𝟎 / year
1h 𝑦𝑒𝑎𝑟
137
5.2.3 UTILITIES COST, CUT
▪ Yearly cost = 𝑄𝑡𝐶ℎ𝑝𝑠

▪ Flowrate at Utility table (B.11.3)
▪ 𝑆𝑡𝑟𝑒𝑎𝑚 𝐹𝑎𝑐𝑡𝑜𝑟 = 0.91
▪ Cost of:
Low Pressure Steam, (LPS) = $ 40/tonne
Cooling Water (CW) = $ 6 cents/m3
(A) HEAT EXCHANGER
I. Heat Exchanger, E-1201 A-E

𝐶𝑜𝑠𝑡
𝑡𝑜𝑛𝑛𝑒 $ 6 cents 0.42 𝑚3 $1 24 ℎ 365 𝑑 𝑅𝑀 4.07
= (20.20 )( 3
)( )( )( )( )( )(0.91) (5)
ℎ 1𝑚 1 𝑡𝑜𝑛𝑛𝑒 100𝑐𝑒𝑛𝑡𝑠 1𝑑 1𝑦 $1
𝐶𝑜𝑠𝑡 = 𝑹𝑴 𝟖𝟐 𝟓𝟕𝟕. 𝟓𝟐 / yr
II. Heat Exchanger, E-1202

𝑡𝑜𝑛𝑛𝑒 $ 40 24 ℎ 365 𝑑 𝑅𝑀 4.07
𝐶𝑜𝑠𝑡 = (1.84 )( )( )( )( ) (0.91)
ℎ 1 𝑡𝑜𝑛𝑛𝑒 1𝑑 1𝑦 $1
𝐶𝑜𝑠𝑡 = 𝑹𝑴𝟐 𝟑𝟖𝟕 𝟗𝟎𝟖. 𝟕𝟐/yr
III. Heat Exchanger, E-1203

𝑡𝑜𝑛𝑛𝑒 $ 40 24 ℎ 365 𝑑 𝑅𝑀 4.07
𝐶𝑜𝑠𝑡 = (0.6 )( )( )( )( ) (0.91)
𝐶𝑜𝑠𝑡 = 𝑹𝑴𝟕𝟕𝟖 𝟔𝟔𝟓. 𝟖𝟗/𝒚𝒓
IV. Heat Exchanger, E-1204

𝑡𝑜𝑛𝑛𝑒 $ 6 cents 0.42 𝑚3 $1 24 ℎ 365𝑑 𝑅𝑀 4.07
𝐶𝑜𝑠𝑡 = (85.50 )( ) (1 𝑡𝑜𝑛𝑛𝑒) (100𝑐𝑒𝑛𝑡𝑠) ( 1 𝑑 ) ( ) (0.91)( )
ℎ 1 𝑚3 1𝑦 $1
138
𝐶𝑜𝑠𝑡 = 𝑹𝑴𝟔𝟗 𝟗𝟎𝟒. 𝟕𝟑/yr
V. Heat Exchanger, E-1205

𝑡𝑜𝑛𝑛𝑒 $ 40 24 ℎ 365 𝑑 𝑅𝑀 4.07
𝐶𝑜𝑠𝑡 = (1.05 )( )( )( )( ) (0.91)
𝐶𝑜𝑠𝑡 = 𝑹𝑴𝟏 𝟑𝟔𝟐 𝟔𝟔𝟓. 𝟑𝟎/yr
VI. Heat Exchanger, E-1206
𝐶𝑜𝑠𝑡 = (62.90 )( ) (1 𝑡𝑜𝑛𝑛𝑒) (100𝑐𝑒𝑛𝑡𝑠) ( 1 𝑑 ) ( ) (0.91)( )
ℎ 1 𝑚3 1𝑦 $1
𝐶𝑜𝑠𝑡 = 𝑹𝑴 𝟓𝟏 𝟒𝟐𝟔. 𝟗𝟗/yr
VII. Heat Exchanger, E-1207

𝐶𝑜𝑠𝑡
= (3.49 )( 3
)( )( )( )( ) (0.91)( )
𝐶𝑜𝑠𝑡 = 𝑹𝑴𝟐𝟖𝟓𝟑. 𝟒𝟐/yr
VIII. Heat Exchanger, E-1208

𝑡𝑜𝑛𝑛𝑒 $ 40 24 ℎ 365 𝑑 𝑅𝑀 4.07
𝐶𝑜𝑠𝑡 = (0.97 )( )( )( )( ) (0.91)
𝐶𝑜𝑠𝑡 = 𝑹𝑴𝟏 𝟐𝟓𝟖 𝟖𝟒𝟑. 𝟏𝟗 /yr
IX. Heat Exchanger, E-1209

𝐶𝑜𝑠𝑡
= (51.3 )( ) ( ) ( ) ( ) ( ) (0.91) ( )
ℎ 1 𝑚3 1 𝑡𝑜𝑛𝑛𝑒 100𝑐𝑒𝑛𝑡𝑠 1𝑑 1𝑦 $1
𝐶𝑜𝑠𝑡 = 𝑹𝑴𝟒𝟏 𝟗𝟒𝟐. 𝟖𝟒/yr
139
X. Heat Exchanger, E-1210
𝐶𝑜𝑠𝑡
= (8.90 )( 3
)( )( )( )( ) (0.91)( )
𝐶𝑜𝑠𝑡 = 𝑹𝑴𝟕𝟐𝟕𝟔. 𝟔𝟑/yr
XI. Heat Exchanger, E-1211

𝐶𝑜𝑠𝑡
= (7.89 )( 3
)( )( )( )( ) (0.91)( )
𝐶𝑜𝑠𝑡 = 𝑹𝑴𝟔𝟒𝟓𝟎. 𝟖𝟔/yr
Thus, total cost = RM 6 050 516.09 / year
(B) PUMPS
Equipment Efficiency Shaft

P-1201 A/B 0.4 6.75
P-1202 A-G 0.7 5.13(7)
P-1203 A/B 0.4 2.75
P-1204 A/B 0.4 0.66
P-1205 A/B 0.4 2.15
P-1206 A/B 0.4 1.93
Total 50.15
▪ Electric cost (from TNB tariffs for general industry) = RM 0.34/kWh
0.94
𝐶𝑜𝑠𝑡 = (50.15)(0.34)(24)(365) (0.80) = 𝑹𝑴 𝟏𝟕𝟕 𝟑𝟕𝟑. 𝟎𝟑 / year
140
Total utilities cost, CUT = RM 6 050 516.09 / year + RM 177 373.03 / year
= RM 6 227 889.12/ year
Total manufacturing cost, COM
The cost of items involved in calculating COM
Items Cost of Items (RM/yr)

𝑪𝑼𝑻 6 227 889.12
𝑪𝑶𝑳 576 000.00
𝑪𝑹𝑴 223 511 619.60
FCl 24 584 346.03
Calculation of Manufacturing Cost without Depreciation, 𝐶𝑂𝑀𝑑
𝐶𝑂𝑀𝑑 = 0.18𝐹𝐶𝐼𝐿 + 2.73𝐶𝑂𝐿 + 1.23(𝐶𝑈𝑇 + 𝐶𝑅𝑀 + 𝐶𝑊𝑇 )
COMd = 0.18 (24 584 346.03) + 2.73 (576 000.00) + 1.23 (6 227 889.12 + 223 511 619.60)
= RM 288 577 258.00 / year
❖ The cost of waste treatment, CWT is not available with the reason that the by-products are
not considered as waste and can be sold to the other manufacturing companies.
(I) Direct Manufacturing Cost (DMC)
𝐷𝑀𝐶 = 𝐶𝑅𝑀 + 𝐶𝑊𝑇 + 𝐶𝑈𝑇 + 1.33𝐶𝑂𝐿 + 0.069𝐹𝐶𝐼𝐿 + 0.03𝐶𝑂𝑀𝑑
DMC = 223 511 619.60+ 6 227 889.12 + 1.33 (576 000.00) + 0.069(24 584 346.03) +
0.03 (288 577 258.00)
= RM 240 859 226.30 / year
141
(II) Fixed Manufacturing Cost (FMC)
FMC =0.708𝐶𝑂𝐿 + 0.068𝐹𝐶𝐼𝐿 + 𝑑𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛
= 0.708 (576 000.00) + 0.068 (24 584 346.03)
= RM 2 079 543.53 / year
(III) General Manufacturing Expenses (GE)
GE = 0.177𝐶𝑂𝐿 + 0.009𝐹𝐶𝐼𝐿 + 0.16𝐶𝑂𝑀𝑑
= 0.177 (576 000.00) + 0.009 (24 584 346.03) + 0.16 (288 577 258.00)
= RM 46 495 572.39 / year
142
5.2.4 REVENUE PER YEAR BASED SELLING PRICE OF PRODUCT
Calculation of Revenue (per year based on selling price)
I. Mass of heptene at the outlet stream: 20 000 mt/year = 2 x 107 kg/yr

II. Market price of heptene: $ 3.89/kg (based on import price in Asian country)
Hence, the Revenue (R) of this process is:
(2𝑥107 ) 𝑘𝑔 $3.89
𝑅= × = $ 77 800 000/𝑦𝑒𝑎𝑟
𝑦𝑒𝑎𝑟 𝑘𝑔
= RM 316 646 000 / year
5.2.5 LAND COST

Land Cost: 4 to 8% from the total equipment cost (𝐶𝐵𝑀 )
Hence, the land cost is estimated to be:
5
5% from 𝐶𝐵𝑀 : 100 × $3 595 464.20 = $179 773.21 = 𝐑𝐌𝟕𝟑𝟏 𝟔𝟕𝟔. 𝟗𝟔
The land cost is 𝐑𝐌𝟕𝟑𝟏 𝟔𝟕𝟔. 𝟗𝟔 in order to build this chemical plant.
5.2.6 WORKING CAPITAL

Working Capital = 20% of FCI
20
𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 = 100 × RM 24 584 346.03 = 𝑹𝑴𝟒 𝟗𝟏𝟔 𝟖𝟔𝟗. 𝟐𝟏
5.2.7 SALVAGE COST

The salvage value for this plant is assumed to be zero
143
5.3 PROFITABILITY ANALYSIS
Cost of Land RM731 676.96

Taxation Rate 28%
Annual Interest Rate 15%
Salvage Value Assume there is no salvage value
Working Capital RM 4 916 869.21
Total fixed capital investment, FCIL RM 23 852 669.07
Cost of manufacturing excluding RM 288 577 258.00 / year
depreciation allowance (after start-up),
COMd
Total Module Factor 1.18
Grass Roots Factor 0.5
Revenue From Sale RM 316 646 000 / year
𝐶𝑅𝑀 (Raw Materials Costs) RM 223 511 619.60
𝐶𝑈𝑇 (Cost of Utilities) RM 6 227 889.12
𝐶𝑊𝑇 (Waste Treatment Costs) 0
𝐶𝑂𝐿 (Cost of Operating Labor) RM576 000 /yr
Project Life (Years after Start-Up) 15 years
Construction period 2 years
Distribution of Fixed Capital Investment
End of year One 60%
End of year Two 40%
144
NON-DISCOUNTED AFTER-TAX CASH FLOW
Table 6.2: Non-Discounted After-Tax Cash Flow
End
SL
FCIL - ∑ dkSL (R-COMd-dk)x Non-di
of Investment Dk R(RM) COMd
(1-t)+dk Cash
Year
0 - 23 852 669.07 - - -
(731 676.96) -7316
(14 311
1 - 23 852 669.07 - - - -14 311
601.442)
(14 457
2 - 23 852 669.07 - - - -14 457
936.838)
3 3407524.15 20445144.92 316 646 000 288 577 258 21163601 2116
4 3407524.15 17037620.77 316 646 000 288 577 258. 21163601 2116
5 3407524.15 13630096.62 316 646 000 288 577 258. 21163601 2116
6 3407524.15 10222572.47 316 646 000 288 577 258. 21163601 2116
7 3407524.15 6815048.32 316 646 000 288 577 258. 21163601 2116
8 3407524.15 3407524.17 316 646 000 288 577 258. 21163601 2116
3407524.15
9 0.0 316 646 000 288 577 258. 20209494 2020
10 - 0.0 316 646 000 288 577 258. 20209494 2020

11 - 0.0 316 646 000 288 577 258. 20209494 2020
12 - 0.0 316 646 000 288 577 258. 20209494 2020
13 - 0.0 316 646 000 288 577 258. 20209494 2020
14 - 0.0 316 646 000 288 577 258. 20209494 2020
731 676.96
15 + 4 916 869.21 - 0.0 316 646 000 288 577 258. 20209494 25858
= 5648546.17
Note that: All calculated values are in RM
145
*(**) = indicated the negative value
NON DISCOUNTED CASH FLOW
Land + Working Capital = −(RM 731 676.96 + RM4 916 869.21 ) = − 5 648 546.17
12 825986.76−(−8337614.24) 4−3
NonDiscounted Payback Period (PBP)= = 4−𝑃𝐵𝑃 = 3.127
12825986.76−(−5648546.17)
= 3.127 years- 2 years(Construction period)
= 1.13 years
Cumulative Cash Position (CCP) =244595394.93
ƩPositive Cash Flow 274096610.2

Cumulative Cash Ratio (CCR) = ƩNegative Cash Flow = = 9.2910
29501215.2
268448064 20649851.08 1
Rate on Return of Investment (ROROI) = = = 0.865724- = 0.7888 or
13 23 852 669.07 13
7.8%
146
NON DISCOUNTED CASH FLOW VS TIME AFTER PROJECT YEARS
20000000
Non Discounted cash Flow
15000000
10000000
5000000
0
0 2 4 6 8 10 12 14 16
-5000000
-10000000
-15000000
Time After Project Years
In Non Discounted Cash Flow it is not recommend to evaluate new large projects because
does not consider the time value of money . Profitability is evaluated through three bases that
include, time, cash and interest rate. The criteria such as payback period (PBP), cumulative cash
position (CCP), cumulative cash ratio (CCR) and rate of return on investment (ROROI) is
determined.
147
DISCOUNTED AFTER-TAX CASH FLOW
En Di
FCIL - ∑ (R-COMd- Non-
d of d
Investment DkSL dkSL R COMd dk)x (1- discounted
Ye
t)+dk Cash Flow
ar
−7
( 23 852
0 - - - -
669.07
731 676.96) (731676.96)
(14 311 23 852 (14 311

1 - - - - 12
601.442) 669.07 601.442)
(14 457 23 852 (14 457

2 - - - - 10
936.838) 669.07 936.838)
13
3 3407524.15 20445144.92 316 646 000 288 577 258 21163601 21163601
3407524.15 12
4 17037620.77 316 646 000 288 577 258. 21163601 21163601
3407524.15 10
5 13630096.62 316 646 000 288 577 258. 21163601 21163601
3407524.15 91
6 10222572.47 316 646 000 288 577 258. 21163601 21163601
3407524.15 79
7 6815048.32 316 646 000 288 577 258. 21163601 21163601
3407524.15 69
8 3407524.17 316 646 000 288 577 258. 21163601 21163601
3407524.15 57
9 0.0 316 646 000 288 577 258. 20209494 20209494
49
10 - 0.0 316 646 000 288 577 258. 20209494 20209494
148
43
11 - 0.0 316 646 000 288 577 258. 20209494 20209494
37
12 - 0.0 316 646 000 288 577 258. 20209494 20209494
32
13 - 0.0 316 646 000 288 577 258. 20209494 20209494
28
14 - 0.0 316 646 000 288 577 258. 20209494 20209494
731 676.96
15 + 4 916 869.21 - 0.0 316 646 000 288 577 258. 20209494 25858040.17 31
= 5648546.17
149
DISCOUNTED CASH FLOW
RM (731 676.96 + 3 453 515.32)
Land + Working Capital = = RM3 639 297.635
(1 + 0.15)
Find time after start-up when cumulative cash flow = - RM3 639 297.635
( −10 193 413.97− 1 906 943.59) (3−4)

Discounted Payback Period (DPBP) : ( = ) – year of
( −10 193 413.97)−(−3 639 297.635) (3−𝑥)
construction
= 3.5417 – 2
= 1.54 year
Net Present Value (NPV) = RM 64 633 271.676
ƩPositive Cash Flow

Present Value Ratio (PVR) =
ƩNegative Cash Flow
𝟖𝟖 𝟕𝟒𝟐 𝟎𝟗𝟔.𝟖𝟒
= 𝟐𝟒 𝟏𝟎𝟖 𝟖𝟐𝟓
= 3.681
150
DISCOUNTED CASH FLOW VERSUS PROJECT OF YEARS
20000000
15000000
DISCOUNTED CASH FLOW
10000000
5000000
0
0 2 4 6 8 10 12 14 16
-5000000
-10000000
-15000000
YEARS
Based on the criteria evaluated for the discounted cash flow, it can be said that the project is
profitable. This is because firstly, the DPBP value is lower. When the shorter of payback period,
the more profitable of project will be. The internal rates is 15% and the taxation rate is 28%. The
NPV and value PVR also is determined.
151
5.3.2 COMPARISON BETWEEN NON-DISCOUNTED AND
DISCOUNTED PROFITABILITY
Non-Discounted Discounted
In non-discounted cash flow does not consider Discounted cash flow showed discounts future
the time value of money. The revenue in cash flows to the present in order to reflect the
future is assume same that was invested in time value of money. The value of the yearly
years before. cash is discounted back to time zero
The payback period is 1.13 years In discounted payback period 1.54 year
The cumulative cash position (CCP) is With 15% interest in discounted cash flow, the
244595394.93 net present value (NPV) obtained RM 64 633
271.676
Interest rate criterion for non-discounted is Interest rate criterion for discounted cash flow
seen from ROROI, where it compares returns is viewed from DCFROR As mentioned
to costs by calculating a ratio or percentage of earlier, the greater the DCFROR from its
costs. The value is 0.7888 or 7.8% interest rate means, the project is profitable as
it could be break even. The Value is 3.681
152
REFERENCE
1. Turton, R., Baeilie, R. C., Whiting W. B., Shaeiwitz, J. A., Bhattacharyya, D. (2013).
Anaysis, Synthesis, and Design of Chemical Processes. United State, America: Pearson
Education International.
2. Petrochemical Industry in Malaysia. (2011). Retrieved from
http://www.fmm.org.my/upload/Country_Report_for_Petrochemical.pdf
3. Munoz, E. W. (2017). Chemical Engineering Plant Cost Index. June 2017. Retrieved from
https://www.scribd.com/document/352561651/CEPCI-June-2017-Issue
4. Butene price history & forecast. (2009). Retrieved from https://www.intratec.us/chemical-
markets/butene-price
5. Propylene price history & forecast. (2009). Retrieved from https://www.intratec.us/chemical-
markets/propylene-price
6. Details of Indian Import Data of Heptene. (2016). Retrieved from
https://www.seair.co.in/heptene-import-data.aspx
7. A, D, 1998. Cost Analysis of Heptene Production of Heptene from Propylene and n-Butene.
Retrieved on 3 December 2017 from
http://www.owlnet.rice.edu/~ceng403/gr1298/heptene.html Retrieved on 1 December 2017
8. Brigitte Rozario (2016) Petronas Upstream Flow (Volume 4) Petroleum Nasional Berhad.
Retrieved from http://www.petronas.com.my
9. Hassan (2014) Discovering Bintulu. Retrieved from http://mole.my/more-industries-
discovering-bintulu/
10. The Star Online (2003, August 21) Environment caring BASF Petronas. Retrieved from
https://www.thestar.com.my/business/business-news/2003/08/21/environment--caring--basf-
petronas/
11. ICIS News ( 2014, December 30) Malaysia flood delay some PE deliveries from
PETRONAS. Retrieved from
https://www.icis.com/resources/news/2014/12/30/9849737/malaysia-floods-delay-some-pe-
deliveries-from-petronas/
153
12. William E.Brock (1986) Safety and Health guide for the Chemical Industry OSHA 3091.
Retrieved from https://www.osha.gov/archive/Publications/osha3091.html
13. Turton, Richard; et al. Analysis, Synthesis, and Design of Chemical Processes. Prentice Hall:
Upper Saddle River, New Jersey. 1998.
14. New Jersey Department of Health and Senior Services, June 1999
15. Kent J.A. (2003) Synthetic Organic Chemicals. In: Kent J.A. (eds) Riegel’s Handbook of
Industrial Chemistry. Springer, Boston, MA, Retrieved from:
https://link.springer.com.ezaccess.library.uitm.edu.my/referenceworkentry/10.1007/0-387-
23816-6_22
16. ReportLinker(2017, October 16), Alpha Olefins Market by Type, Application And Region -
Global Forecast to 2022. Retrieved from https://www.prnewswire.com/news-releases/alpha-
olefins-market-by-type-application-and-region---global-forecast-to-2022-300537429.html
17. ICIS Chemical Business(2007, August 6), Chemical Profile 1-Octene, Retrieved from
https://www.icis.com/resources/news/2007/08/06/9050162/chemical-profile-1-octene/
18. Barton, Allan. CRC Handbook of Solubility Parameters and Other Cohesion Parameters.
CRC Press: Boca Raton, Florida. 1991.
19. Technavio(2017, October 4), Alpha Olefins Market-Segmentation Analysis And Forecast By
Technavio. Retrieved from
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Segmentation-Analysis-Forecasts
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154

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CONTENTS

PROCESS BACKGROUND AND SELECTION

a) Production of heptane from propylene and butane

DISTILLATION COLUMN DESIGN

DISTILLATION COLUMN DESIGN

Heptane is used widely in production of plasticizers. Plasticizers are colorless and

1) Validation master plan required prior to implementation

This process is designed to convert C3 and C4 unsaturated hydrocarbons (propylene and

• C3H6 + C3H6 = C6H12 formation of 1-Hexene

C3H6 + C3H6 = C6H12 formation of 1-Hexene

C3H6 + C4H8 = C7H14 formation of 1-Heptene

C4H8 + C4H8 = C8H16 formation of 1-Octene

C3H6 + 2C4H8 = C11H22 formation of 1-Undecene

2.1.0 FACTORS IN CHOOSING SITE LOCATION

Kerteh, • Kerteh port

Bintulu, • Bintulu Port

Table 2.1: Ease of Transportation

Chemical Capacity(mtpa) Company Company location

Propylene 854 thousand - MTBE (M) Sdn Bhd - Gebeng, Pahang

- Optimal Olefins (M) - Kerteh, Terengganu

Butene 20.4 million - Petronas Gas Berhad - Kerteh, Terengganu

- Malaysia LNG 3 Sdn - Bintulu, Sarawak

Location Land available Selling price

Gebeng industrial Park, 250 acre Rm18.00

100 acre Rm8.00

Table 2.3: Land prices and area

Location Number of population Land area Training center

Kerteh, Terengganu 207 ,400 256 Institut Teknologi

Gebeng, Pahang 461 ,906 324 Industrial Training

Bintulu, Sarawak 183 ,402 7220 Advanced technology

Location Water supplier Electricity supplier Wastewater Treatment

• Syarikat Air Terengganu • Paka Power Plant

Gebeng, • Semambu Water • Tenaga Nasional • Producing a

Bintulu, • Laku Management Sdn • Sarawak Electricity • Highly efficient

Table 2.5 : Utilities supplier for each place

Source Potential Hazard Effects Control Measures

• Select site with minimal

Environment • Untreated waste • Water • Wastewater treatment

Table 2.6: Effect and measure taken

• Heavy monsoon rains have caused flooding.

• Houses, schools, hospitals for local community are

• Kerteh Fire and Rescue station

Gebeng, Pahang • Floods

• Gebeng has service provided such as Gebeng

• Areas that always occur flooding is areas along

• Pahang Fire and Rescue department.

Bintulu, Sarawak • Bintulu are known as a town that is rare to be flooded.

• Bintulu has deepwater port and LNG plants are located

• Fire safety and Crisis Management program are once

• Shell Bintulu explosion in 1997 occurred due to major

• Bintulu Fire & Rescue Services department

Table 2.7: Occurrence of natural disaster

Ease of • Kerteh port • Kuantan port • Bintulu Port

Land Prices and

• 280 acre • 250 acre • 100 acre

Labor supply High High

• Monsoon season • Gebeng • Deepwater

Water supplier • Syarikat Air • Semambu Water • Laku

RAW MATERIAL SUPPLY

Propylene Kerteh Gebeng Kerteh

Butenes Kerteh Kerteh Bintulu

Table 2.8: Site location and its factor comparison

Concept screening is a quick, approximate evaluation to produce a few viable alternatives.