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#1 Ghamsa

Ghamsa

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Posted 03 September 2004 - 04:27 AM

We have 2 Fractionation columns these columns are:
1) DePropanizer (DeC3) to produce liquid Propane product (C3).
2) DeButanizer (DeC4) to produce liquid Butane product (C4).

We are producing these products (C3 & C4) as per certain products specifications expressed in volumetric percentages, for example C4 component in the C3 product must not be more than 4 volume%.

With that in mind, we also need to increase the product revenues by minimizing product giveaways by minimizing the more valuable component in the product or vise versa but within the products spec.

At the beginning of each month, we receive products prices expressed in mass basis for example:
1) C3 product is $xx/Metric tone
2) C4 product is $yy/Metric tone

Based on the above C3 & C4 product prices, we go ahead and adjust the DeC3 and DeC4 fractionation operating targets meaning when to maximize or minimize, for example, C3 component in C4 product or C4 component in C3 product.

Please note the following points:
1) Due to density difference, C3 & C4 product prices in volumetric basis ($x/bbl) are always OPPISITE of C3 & C4 product prices on mass basis ($x/Metric tone).

2) DeC3 and DeC4 columns are being operated and controlled on volume basis, for example C4 component in C4 product is being controlled at 4 volume% in C3 product. Also, C3 product to storage is measured in MBD (thousands bbl per day).

THE QUESTION:
If we are operating the columns on volumetric basis and, at the same time, adjusting the columns fractionation operating targets based on C3/C4 products prices that expressed in mass basis, $x/Metric ton, is this the right way of minimizing product giveaways?
Please note that we sell our products (propane & butane) to customers based on mass pricing.

Thx all




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