Economic Analysis of Flare gas recovery system in a Refinery plant in Nigeria

Petroleum and Chemical Industry International Pub Date : 2023-04-30 DOI:10.33140/pcii.06.02.12

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Abstract

The emission of greenhouse gases like methane and carbondioxide during gas flaring in the oil and gas refineries is of immense concern in mitigation of climate change. As a result of this, flare gas recovery system is encouraged through various policies to be installed in oil and gas refineries. The current work is on the economics analysis of flare gas recovery system in a refinery plant in Nigeria to determine the prospect and feasibility of installation and operation. The simulation of the system was carried out using Unisim Design 471 software, and the economic analysis conducted manually. The result of the cost estimation and profitability analysis show total purchased equipment cost ($52,327,866), total capital investment ($549,088,158), annual total production costs ($204,681,762), profit after tax ($2,007,068,515), rate of return (365.50 %) and payback time (3.28 months). Based on the result, the flare gas recovery system has a great prospect and feasibility, its installation and operation could help to minimize the greenhouse gases emission, energy consumption, create employment and increase the revenue generation of the refinery.

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尼日利亚炼油厂火炬气回收系统的经济分析

在石油和天然气精炼厂的天然气燃烧过程中，甲烷和二氧化碳等温室气体的排放是减缓气候变化的一个巨大问题。因此，通过各种政策鼓励在石油和天然气精炼厂安装火炬气回收系统。目前的工作是对尼日利亚炼油厂火炬气回收系统进行经济分析，以确定安装和运行的前景和可行性。采用Unisim Design 471软件对系统进行仿真，并进行人工经济分析。成本估算和盈利能力分析的结果显示，总采购设备成本为52,327,866美元，总资本投资为549,088,158美元，年生产总成本为204,681,762美元，税后利润为2,007,068,515美元，回报率为365.50%，投资回收期为3.28个月。结果表明，火炬气回收系统具有广阔的应用前景和可行性，其安装和运行有助于减少炼油厂的温室气体排放和能源消耗，创造就业机会，增加经济效益。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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Petroleum and Chemical Industry International

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