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# Estimation Of Gas Centrifugal Compressor Cost

centrifugal compressor gas compressor cost cost estimation usd per kw

9 replies to this topic
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### #1 rha257

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Posted 23 November 2019 - 01:19 PM

Hello All,

Is there any rule of thumb in the oil and gas business which can provide a rough estimate of the selling price of a natural gas centrifugal compressor? (e.g. USD per kW) I know the price varies depending on end user specification, gas composition and compressor manufacturer, however, I believe there must be a quick way to provide a rough estimate of the price of a centrifugal compressor based on kW or flow.

Please let me know if any of the professionals around have any thumbs of rules.

Thanks

### #2 breizh

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Posted 23 November 2019 - 09:19 PM

Hi,

http://www.mhhe.com/...rs/data/ce.html

Will it help?

Why don't  you ask a vendor and submit a specification sheet ?

my view.

Breizh

### #3 PingPong

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Posted 24 November 2019 - 04:45 AM

That mhhe.com website gives way too low compressor cost.

In that url the word peters is included so I assume that it is based on the book by Peters & Timmerhaus, published by McGrawHill.

For example: for a 3000 kW centrifugal compressor the website calculates 1.67 million US \$, which corresponds with Figure 12-28 for Jan 2002. Figure B-5 for Jan 2002 in the Peters book gives 2.2 million US \$.

Those costs you have to increase considerably to get 2020 cost.

Towler & Sinnott's book gives a formula in the form: Ce = a + b*Sn

where:

Ce = purchased equipment cost on a U.S. Gulf Coast basis, Jan. 2010 (CEPCI = 532.9, NF refinery inflation index = 2281.6)

a, b = cost constants
S = size parameter, for compressor KW
n = exponent for that type of equipment

For a centrifugal compressor they give:

a = 580,000

b = 20,000

n = 0.6

For example: for compressor S = 3000 kW that would give 3.02 million US \$ (Jan 2010) which you have to increase to get 2020 cost.

If the compressor is to be driven by a gas turbine or steam turbine you need to include the purchased equipment cost for that too.

If the compressor is made of some alloy that also increases purchased cost.

Also the compressor design pressure has an impact on purchased equipment cost.

Note also that the installed cost of a compressor (or any other piece of equipment) is always much higher than the purchased equipment cost.

For an estimate of the purchased compressor cost you best contact a vendor.

To determine the installed cost you best contact an experienced cost estimator in your company.

If you would estimate it yourself it would only be a wild guess and probably too low.

Edited by PingPong, 24 November 2019 - 05:24 AM.

### #4 rha257

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Posted 25 November 2019 - 07:27 AM

That mhhe.com website gives way too low compressor cost.

In that url the word peters is included so I assume that it is based on the book by Peters & Timmerhaus, published by McGrawHill.

For example: for a 3000 kW centrifugal compressor the website calculates 1.67 million US \$, which corresponds with Figure 12-28 for Jan 2002. Figure B-5 for Jan 2002 in the Peters book gives 2.2 million US \$.

Those costs you have to increase considerably to get 2020 cost.

Towler & Sinnott's book gives a formula in the form: Ce = a + b*Sn

where:

Ce = purchased equipment cost on a U.S. Gulf Coast basis, Jan. 2010 (CEPCI = 532.9, NF refinery inflation index = 2281.6)

a, b = cost constants
S = size parameter, for compressor KW
n = exponent for that type of equipment

For a centrifugal compressor they give:

a = 580,000

b = 20,000

n = 0.6

For example: for compressor S = 3000 kW that would give 3.02 million US \$ (Jan 2010) which you have to increase to get 2020 cost.

If the compressor is to be driven by a gas turbine or steam turbine you need to include the purchased equipment cost for that too.

If the compressor is made of some alloy that also increases purchased cost.

Also the compressor design pressure has an impact on purchased equipment cost.

Note also that the installed cost of a compressor (or any other piece of equipment) is always much higher than the purchased equipment cost.

For an estimate of the purchased compressor cost you best contact a vendor.

To determine the installed cost you best contact an experienced cost estimator in your company.

If you would estimate it yourself it would only be a wild guess and probably too low.

My understanding is that the equation you provided approximates the cost of the compressor (including dry gas seals, dry gas seal panels, bearings, instrumentation, lube oil system, lube oil cooler, rundown tank, gearbox, base frame, etc.) and electric motor only, right? Also, what do you mean when you say "installed cost"? Is it the civil related works, interconnecting piping and labour & engineers man hours required to install the compressor or does it include any equipment?

Edited by rha257, 25 November 2019 - 07:32 AM.

### #5 breizh

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Posted 25 November 2019 - 08:20 AM

Hi ,

The link provided is based on Peters' data , the reference is  January 2002 .

CEPCI January 2002 # 390 compared to 604 end of July 2019.

note : I've added a booklet to understand the cost estimation rules .

http://www.sugartech...ation/index.php

Good luck

Breizh

#### Attached Files

Edited by breizh, 25 November 2019 - 07:31 PM.

### #6 breizh

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Posted 25 November 2019 - 08:16 PM

Hi ,

In  addition to my previous post , consider the following data extracted from :Engineering economics and economics design for process engineers by Thane Brown .

Gas centrifugal compressor:

Purchase Cost ( *1000 USD) = 1.64 *(HP)^0.8           (year 2005)  with CEPCI year 2005 March   # 460

price includes Motor and auxiliaries  .

material factor : CS =1 ;SS =2.5

driver factor : electric motor =1 ; Turbine =1.2;Gas engine =1.4

Good luck .

To me, still better to get a quote from vendor , not knowing which part of the world you are .

Breizh

Edited by breizh, 26 November 2019 - 12:26 AM.

### #7 rha257

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Posted 26 November 2019 - 12:27 AM

Hi ,

In  addition to my previous post , consider the following data extracted from :Engineering economics and economics design for process engineers by Thane Brown .

Gas centrifugal compressor:

Purchase Cost ( *1000 USD) = 1.64 *(HP)^0.8           (year 2005)  with CEPCI year 2005 March   # 460

price includes Motor and auxiliaries  .

material factor : CS =1 ;SS =2.5

driver factor : electric motor =1 ; Turbine =1.2;Gas engine =1.4

Good luck .

To me still better to get a quote from vendor , not knowing which part of the world you are .

Breizh

Dear Breizh,

Thank you for your response. I really appreciate.

Considering a 20 MW electric motor, the equation that you have provided will yield a cost of 5,721,063.7 USD in 2005. Adjustment to inflation will yield approximately 7,538,621.90 USD in 2019. Comparing this figure to the figure obtained from the cost equation provided by Pingpong yields 8,194,615.8 USD in 2010 and 9,671,146.8 USD in 2019. I think this is a huge variation between both equations. Do you have any idea why would that be the case? Also, what are the auxiliaries that are usually considered in such cost estimation formulas?

### #8 breizh

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Posted 26 November 2019 - 12:41 AM

Hi ,

*From the book in reference auxiliaries mean Coolers , separators  , tanks , …..

* Just an estimate , don't expect more in term of accuracy  .

* How many units do you consider ? this is also the reason why you need to consult vendors .

It will not take long to get an answer .

As an option you can check with manufacturers in China .

Underneath a calculator to support your work .

http://yrsp.elliott-..._perf/index.jsp

My view

Breizh

Edited by breizh, 26 November 2019 - 03:24 AM.

### #9 PingPong

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Posted 26 November 2019 - 05:34 AM

My understanding is that the equation you provided approximates the cost of the compressor (including dry gas seals, dry gas seal panels, bearings, instrumentation, lube oil system, lube oil cooler, rundown tank, gearbox, base frame, etc.) and electric motor only, right?
Right, it includes what the compressor vendor supplies, nothing more.

Also, what do you mean when you say "installed cost"? Is it the civil related works, interconnecting piping and labour & engineers man hours required to install the compressor or does it include any equipment?
The installed cost of the compressor also includes the transportation (including insurance) from the vendor to the site, and any costs at site such as foundation, piping, cables, instrumentation, a shelter above the compressor (if you want), et cetera, and associated labor for that. Simply put: it is all the additional costs within one or two meters from the new compressor.

If a new suction KO drum is required, or new interstage coolers and interstage drums, or whatever other new equipment, then you need to estimate that separately. That is then the installed cost of new vessels and exchangers, not the installed cost of the new compressor.

Considering a 20 MW electric motor, the equation that you have provided will yield a cost of 5,721,063.7 USD in 2005. Adjustment to inflation will yield approximately 7,538,621.90 USD in 2019. Comparing this figure to the figure obtained from the cost equation provided by Pingpong yields 8,194,615.8 USD in 2010 and 9,671,146.8 USD in 2019. I think this is a huge variation between both equations. Do you have any idea why would that be the case?
8.2 million or 9.7 million USD is not a huge difference, you could say: it seems to be 9 million USD +/- 8 %.

However the above cost correlations from various textbooks are never very accurate, with an accuracy of say +/- 25 %. They are just to give the reader a rough idea.

Sofar it seems that the installed cost of your 20 MW compressor could be in the range of 10 to 15 million USD.

Exact purchased compressor cost depends on material of construction, design pressure, et cetera, and the selected vendor.

You really should make a detailed compressor data sheet and send that to one or more vendors to get a more reliable estimate.

Exact installed compressor cost depends on amount of additional work and materials required at your compressor location.

### #10 gegio1960

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Posted 26 November 2019 - 01:32 PM

interesting discussion.....

a 20 MW machine deserves a lot of more efforts other than a quick-and-dirty estimate.

just to have a little update, it would be nice to see the quoted prices