1 reply to this topic

[matthewneave]

I am a consultant trying to find approximate costs for building certain types of LPG storage. At the moment the problem is very much high level, with no detailed scope of works. Essentially the client is interested in looking at a range of LPG trading options (principally propane) and is interested in the economics of a variety of options. Once we've finished this high level round, we can then refine the requirement.

 

The decision currently is do we look at building one large refrigerated tank of around 30,000m3 (~18,000t), or do we build a number of spherical pressurised tanks? I've asked around and the best information I can find is that a 4,000m3 sphere can cost $10-20mn while a 30,000m3 tank can cost about $100mn. I would welcome any opinions on whether these numbers are too high or too low?

 

I would also be grateful if members could give me some tips on how to work out the operating costs of these options? I have seen some figures for LNG storage that say operational expenditure can range from 2-5% of capital expenditure, but I don't know if the same holds for LPG storage as this figure seems quite high. I would also have thought that pressurised storage is a lot cheaper to run than the refrigerated kind.

 

I appreciate that costs are heavily depend on a number of factors, but all I am after is either a range of rough order costs, or a resource that I could use to help me answer this (equipment valuation software for example).

 

Thank you very much.

[Bobby Strain]

So, you want us to give you free advice. For which you will collect a fee from your client. That seems not quite fair.

 

Bobby