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TABLE OF CONTENT

DECLARATION ……………………….. ii
CERTIFICATE ……………………….. iii
ACKNOWLEDGEMENTS ……………………….. iv
ABSTRACT ……………………….. v
LIST OF TABLES ……………………….. vi
LIST OF FIGURES ……………………….. viii
CHAPTER-1 PROJECT DETAILS ……………………….. 1
1.1 Introduction ……………………….. 1
1.1.1 Problem statement ……………………….. 2
1.1.2 Problem description ……………………….. 2
1.1.3 Product specification ……………………….. 3

CHAPTER-2 PROJECT DESCRIPTION ……………………….. 4

2.1 Uses & Present status of the product ……………………….. 4
2.1.1 Rural heating ……………………….. 4
2.1.2 Motor fuel ……………………….. 5
2.1.3 Refrigeration ……………………….. 5
2.1.4 Cooking ……………………….. 5
2.1.5 Industrial use ……………………….. 5
2.1.6 Further commercial uses ……………………….. 5
2.1.7 Agriculture use ……………………….. 6
2.1.8 Transportation use ……………………….. 6
2.2 Present status of the product ……………………….. 6
2.2.1 Global LPG demand ……………………….. 7
2.2.1.1 US, Canada ……………………….. 8
2.2.1.2 Middle East ……………………….. 8
2.2.1.3 Africa ……………………….. 8
2.2.1.4 Northeast Asia ……………………….. 8
2.2.1.5 Indian subcontinent ……………………….. 9
2.3 Brief description of the available 9
processes for the production of the
desired Product ………………………..
2.3.1 Available processes ……………………….. 9
2.3.2 Brief description ……………………….. 9
2.3.2.1 Extraction of LPG from crude oil ……………………….. 10
2.3.2.2 Re-contacting- compression ……………………….. 11
2.3.2.3 Refrigeration ……………………….. 12
2.3.2.4 Absorption ……………………….. 12
2.3.2.5 Adsorption ……………………….. 13
2.4 Techno-economic appraisal of 15
alternative processes/schemes ………………………..
2.5 Status of technologies/schemes 16
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available ………………………..
2.6 Selection of technology/scheme ……………………….. 16
2.6.1 Basis of selection ……………………….. 17
2.7 Details of the selected process ……………………….. 18
2.7.1 Feed gas compression and pre-cooling ……………………….. 21
2.7.2 Feed gas drying and regeneration ……………………….. 21
2.7.3 Chill down ……………………….. 22
2.7.4 Multi heat exchanger ……………………….. 22
2.7.5 HP separator ……………………….. 23
2.7.6 LP separator ……………………….. 23
2.7.7 Fractionation section ……………………….. 24
2.7.7.1 LEF column ……………………….. 24
2.7.7.2 LPG column ……………………….. 24
2.7.8 Lean gas compression ……………………….. 25
2.7.9 Propane refrigerant system ……………………….. 25
2.8 Raw materials ……………………….. 26
2.8.1 Detailed specifications ……………………….. 26
2.8.2 Requirement of raw material ……………………….. 27
2.8.2.1 Basic assumptions ……………………….. 27
2.8.2.2 Calculation ……………………….. 27
2.8.3 List of Licenses & Permissions required 27
for LPG plant ………………………..
2.8.4 Natural gas processing ………………………. 28
CHAPTER-3(A) MASS BALACE (2.816 LAC MTPA) ……………………….. 33
3.1 Assumptions ……………………….. 33
3.2 Mass balance on the Knock out drum ……………………….. 35
3.3 Mass balance on Drier ……………………….. 36
3.4 Mass balance on Molecular sieve bed ……………………….. 37
3.5 Mass balance on High pressure 38
separator ………………………..
3.6 Mass balance on Low pressure separator ……………………….. 39
3.7 Mass balance on Light End 40
Fractionation column (LEF) ………………………..
3.8 Mass balance on LPG column ……………………….. 42
CHAPTER-3(B) ENERGY BALANCE ……………………….. 44
3.9 Assumptions ……………………….. 44
3.10 Energy balance on Knock out drum ……………………….. 45
3.11 Energy balance on Compressor ……………………….. 47
3.12 Energy balance on Heat Exchanger 1st ……………………….. 48
3.13 Energy balance on Heat Exchanger 2nd ……………………….. 49
3.14 Energy balance on High pressure 50
separator ………………………..
3.15 Energy balance on Low Pressure 52
Separator ………………………..
3.16 Energy balance on Molecular Sieve Bed ……………………….. 53
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3.17 Energy balance on Regenerater Heater ……………………….. 54

3.18 Energy balance on Heat Exchanger 3rd ……………………….. 55
3.19 Energy balance on Heat Exchanger 4th ……………………….. 56
3.20 Energy balance on Chiller ……………………….. 57
3.21 Energy balance on Multi-Heat 58
Exchanger ………………………..
3.22 Energy balance on LEF Column ……………………….. 59
3.23 Energy balance on LPG Column ……………………… 62
3.24 Energy balance on Heat Exchanger 5th ……………………… 64
CHAPTER-4 DESIGN ASPECTS ……………………….. 65
4.1 Process Designing of equipments ……………………….. 65
4.1.1 Knock out drum ……………………….. 65
4.1.2 Gas phase pipe line sizing ……………………….. 68
4.1.3 Liquid phase pipe line sizing ……………………….. 69
4.1.4 Pump ……………………….. 71
4.1.5 Shell and tube heat exchanger ……………………….. 74
4.1.6 Separator ……………………….. 77
4.1.7 LPG distillation column ……………………….. 80
4.1.8 Molecular Sieve Bed ……………………….. 92
4.2 Mechanical Designing of equipments ……………………….. 94
4.2.1 Shell and tube heat exchanger ……………………….. 94
4.2.2 LPG distillation column ……………………….. 100
4.3 Specifications of equipments ……………………….. 108
4.3.1 Knock out drum ……………………….. 108
4.3.2 Molecular sieve bed ……………………….. 108
4.3.3 Chiller ……………………….. 108
4.3.4 HP separator ……………………….. 109
4.3.5 LP separator ……………………….. 109
4.3.6 Pump ……………………….. 109
4.3.7 Compressor ……………………….. 109
4.3.8 Liquid phase pipe line ……………………….. 110
4.3.9 Gas phase pipe line ……………………….. 110
4.3.10 LEF column ……………………….. 110
4.3.11 LPG column ……………………….. 110
4.3.12 Specification sheet of heat exchanger ……………………….. 112
4.4 Major engineering problems of the plant 113
with their possible remedies ……………………….
CHAPTER-5 MATERIALS STORAGE & 116
HANDLING ………………………..
5.1 Introduction to material storage ……………………….. 116
5.2 Storage tanks ……………………….. 117
5.3 Introduction to material handling ……………………….. 118
5.4 Likely hazard scenarios and 119
recommended control strategies ………………………..
5.4.1 Classification of Hazardous Area ……………………….. 119
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5.4.2 Physiological effects ……………………….. 120

5.4.3 Explosion-fire ……………………….. 120

5.4.4 Auto-ignition ……………………….. 120

5.4.5 Sparks ……………………….. 121

5.4.6 Lightning ………………………. 121

5.4.7 Static electric charges ……………………….. 121

5.5 Types of storage tanks ……………………….. 123

CHAPTER-6 PROCESS INSTRUMENTATION AND
CONTROL AND SAFETY
ASPECTS ……………………….. 125
CHAPTER-7 ENVIRONMENTAL ASPECTS ……………………….. 127
7.1 Air Pollution ……………………….. 127
7.1.1 Hydrocarbons ……………………….. 127
7.1.2 Oxides of nitrogen ……………………….. 127
7.1.3 Particulates ……………………….. 127
7.2 Control of emission from refinery 128
process gases ………………………..
7.3 Control of emission from fuel 128
combustion ………………………..
7.4 Control of emissions in storage ……………………….. 128
7.5 Standards for gaseous emission ……………………….. 129
7.6 Water pollution ……………………….. 129
7.6.1 Charters tic of waste water effluent ……………………… 129
7.6.2 Types of water pollution ……………………….. 130
7.6.2.1 Physical pollution ……………………….. 130
7.6.2.2 Chemical pollution ……………………….. 130
7.6.2.3 Physiological pollution ……………………….. 130
7.6.2.4 Biological pollution ……………………….. 131
7.7.1 Primary treatment methods ……………………….. 131
7.7.2 Secondary treatment method ……………………….. 131
7.7.3 Tertiary treatment methods ……………………….. 132
CHAPTER-8 PLANT UTILITIES ……………………….. 133
CHAPTER-9 ORGANISATIONAL STRUCTURE 134
AND MANPOWER REQUIREMENT ………………………..
9.1 Organizational Chart ……………………….. 134
9.2 Man Power Distribution & man power 135
requirement ………………………..
CHAPTER-10 MARKET PROSPECTS ……………………….. 136
10.1 A brief analysis of demand and supply ……………………….. 136
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10.2 Future demand ……………………….. 138

10.3 Cost of LPG ……………………….. 140
10.4 Capacities of different petroleum 140
industries in India ………………………..
10.5 Export potential ……………………….. 141
10.6 LPG subsidies ……………………….. 142
10.7 Marketing set-up and area of 142
consumption ………………………..
CHAPTER-11 SITE SELECTION AND PROJECT 144
LAYOUT ………………………..
11.1 Site selection ……………………….. 144
11.2 Government policy ……………………….. 146
11.2.1 Vision ……………………….. 146
11.2.2 Fiscal/ Rebate ……………………….. 146
11.2.3 Locational Policy ……………………….. 147
11.2.4 Environmental Clearances ……………………….. 147
11.2.5 Government Approval ……………………….. 147
11.3 Plant layout ……………………….. 148
CHAPTER-12 ECONOMIC EVALUATION AND ……………………….. 149
PROFITABILITY OF THE PROJECT
12.1 Total equipment cost estimation ……………………….. 152
12.2 Fixed Capital Investment Estimation ……………………….. 153
12.3 Working Capital Investment ……………………….. 153
12.4 Total Capital Investment ……………………….. 154
12.5 Total Production Cost Estimation ……………………….. 154
12.5.1 Fixed Charges ……………………….. 154
12.5.2 Direct Production Cost (DPC) ……………………….. 154
12.5.3 Plant overhead Cost Estimation ……………………….. 155
12.5.4 Manufacturing Cost Estimation ……………………….. 155
12.5.5 General Expenses ……………………….. 155
12.6 Total Production Cost Estimation ……………………….. 155
12.7 Total Earning / Income ……………………….. 155
12.8 Gross Earning Estimation ……………………….. 155
12.9 Taxes ……………………….. 156
12.10 Net Profit Estimation ……………………….. 156
12.11 Rate Of Return ……………………….. 156
12.12 Break Even Point ……………………….. 157
12.13 Payout period ……………………… 157
12.14 cash flow chart ……………………… 158
Chapter 13 Summary ……………………...... 159
References ……………………….. 161