CHAPTER I

COMPANY PROFILE

Dana Gas is the Middle East’s first and largest regional private sector natural gas

company. Dana gas is currently the 6th largest gas producer in Egypt, and operates in the

Nile Delta through the El Wastani Petroleum Compnay (WASCO), Dana Gas’ joint

venture company with the Egyptian Batural Gas Holding Company (EGAS), where almost

all of its 695 employees are Egyptians. In 2013, the production in Egypt averaged 36,700

BOEPD, a significant year on year increase of 14%. The company to 41,500 BOEPD, in

Egypt in the last five years.

El Wastani Petroleum Company also known as WASCO is engaged in exploration

and production of oil and gas products. They are also the leading company in petroleum

exploration and production field, working to maximize production and increase reserves

in Egypt.

An LPG plant in Damietta, Egypt, operated by El-Wastani Petroleum Co.

(WASCO), contains a turboexpander LPG recovery unit. Due to the increased demand

for ethane and LPG in Egypt, a retrofit was recommended for the WASCO plant to

increase LPG recovery and produce ethane as a new product.

Vast reserves of natural gas exist in Egypt, with strong potential for additional

discoveries. The western desert regions, the Nile Delta, and the Mediterranean Sea have

shown great promise for further increasing Egypt’s gas production in the future. However,

low levels of NGL recovery in domestic gas processing plants force Egyptian

petrochemical companies to import their feedstocks at high prices due to high

transportation costs. However, domestic gas processing companies could provide a large

percentage of those feedstocks if NGL recovery levels are increased.

WASCO owns and operates a network of wells and a gas gathering system in the

Nile Delta area. The gas stream is directed to a central processing facility (CPF) located

at Damietta. The WASCO CPF was originally designed to process 160 MMscfd of feed

gas (with a molecular weight of 19.13) and 4 Mbpd as raw condensate (with a
condensate/gas ratio of 25 bbl/MMscf) to produce 245 tpd of LPG product for the local

market, 5 Mbpd of stabilized condensate and 153 MMscfd of sales gas for the Egyptian

national gas grid. In 2014, plant processing capacity increased to 200 MMscfd of feed

gas.
 CHAPTER II

PROCESS FLOW DIAGRAM

The process starts when the feed first enter a heat exchanger to decrease the

temperature for feed conditioning. It will be expand in an expander and then subjected to

the absorber. From the absorber, the overhead vapor is compressed and the final product

from it is the sales gas. The feed gas is scrubbed by using a light hydrocarbon reflux

coming from the top of the primary deethanizer. The bottom product of the deethanizer is

sent to the LPG column so the LPG will be separated from the heavier hydrocarbons. The

overhead product is the LPG and the bottom product is C3+ which will be subjected to the

fractionating system.

The feed enters deethanizer column near the top. The overhead product of the

deethanizer is ethane and the bottom product will be subjected to the debutanizer.The

debutanizer is prior to the depropanizer so that the next column will be reduced. The

fractionation at the debutanizer results to overhead products which is butane and propane

and bottom product which is the natural gasoline (C5+). The propane and butane will enter

the depropanizer and will yield propane at the overhead and butane at the bottom. The
butane will be subjected to the butane splitter to separate the iso-butane from n-butane.

Every product is subjected to their respective storage and are ready to market.

The bottom product of the deethanizer column will head to the LPG column. The

column operates with 4 bar pressure and 17.46˚C temperature at the overhead. The

overhead product will be condensed in the condenser with chilled water and then sent to

the reflux drum. The bottom product of the reflux drum will be pumped back to the LPG

column and the overhead which is the LPG will be sent to the storage. The reflux drum

has a reflux ratio of 0.9. The bottom part of the column operates at 10 bar and 209.6˚C

and the bottom product will be sent to the second deethanizer column. The bottom

product will also be subjected to the reboiler on its way through the deethanizer column.
 CHAPTER III

MODIFIED PROCESS FLOW DIAGRAM

The recovery of valuable heavier hydrocarbons from natural gas is accomplished

in a series of distillation columns. The first column is a cryogenic high-pressure column in

which the methane is taken overhead and the ethane and heavier hydrocarbons are

produced as a bottoms product called “natural gas liquid” (NGL). This demethanizer

column uses compression and expansion to achieve the required low temperatures (190

K) for achieving liquids at the operating pressure of 25 atm. The column has a complex

configuration of side-reboilers that use the ambient-temperature natural-gas feed stream

to partially reboil the column and precool the feed. Additional feed precooling occurs using

the cold methane gas product stream from the top of the column and using an external

refrigerant. Finally a portion of the cold feed is expanded in a turbine and fed near the top

of the column while the remainder is flashed and fed to the top tray as reflux.
Here are some reasons why the researchers added a demethanizer unit in the process:

 A demethanizer tower was added where the methane-free NGL product is

recovered as a bottom product.

 A small portion of residue gas was withdrawn, condensed, subcooled and then

flashed in the demethanizer top tray to perform as a reflux.

 A new three-pass heat exchanger was added to provide a cold reflux stream to the

demethanizer tower.

 A new demethanizer pump was added to pump NGL through the cold box and the

gas/liquid exchanger to provide bottom heat for the demethanizer tower.

 A new gas/liquid exchanger was added to transfer heat from hot sales gas to NGL

from the demethanizer tower; this exchanger is used as a side reboiler.

 Ethane recovery schemes are typically more highly heat integrated, utilizing inlet

gas to provide the reboiling for the demethanizer with a bottom reboiler and one or

more side reboilers.

 The demethanizer is operated at high a pressure.

 Although the demethanizer can be operated at pressures in excess of 500 psig,

efficient heat integration via reboilers, especially when processing cool inlet gas,

and separation efficiency come into question.

 When operating a demethanizer at a normal pressure of 500 psig or greater, start-

up and JT mode operation can prove to be difficult

 The demethanizer must operate at elevated pressures to counter the loss of

expander boost.
 CHAPTER iV

ECONOMIC ANALYSIS

Total Capital Investment

Equipment Cost

Equipment Quantity Total cost ($)

Heat exchanger
1 789,625.03
expander

Heat exchanger 1 734,135.00

Pump 7 285,075.0

Heat absorber column 1 283,747.6

Deethanizer column 1 27,419.5

Demethanizer column 1 29,3847.7

Trays 150 630,000

Reboiler 6 274,734.00

Condenser 5 211,400

Reflux drum 5 653,270.04

Column 5 137,097.5

Natural gasoline storage 1 470,730.90

Propane storage 1 20,874.20

I-butane storage 1 20,874.20

N-butane storage 1 20,874.20

Ethane storage 1 20,874.20

LPG storage 1 20,874.20

Total: 4,601,605.57
CAPEX

Capital Expenditure or CAPEX is money invested to acquire non-consumable

assets.

Fixed Capital Cost [USD ($)]

Equipment Purchased Delivered 25 680 000

Installation of Equipment 12 070 000

Instrumentation and Controls

14 250 000
Installed

Pipes Installation 17 480 000

Building and its services 13 630 000

Electrical System Installation 9 820 000

Services Facilities 18 000 000

Engineering and Supervisions 10 272 000

Construction Expenses 14 540 000

Yard Improvement 10 272 000

Contactor Fees 5 136 000

Legal Expenses 3 030 000

Contingency 12 310 000

Land Cost 3 200 000

Fire Fighting 3 523 000

Offloading Facility 4 587 000

Taxation 1 120 000

Storages 17 976 000

Total 196 860 000

OPEX

Operating expenditure or OPEX is an ongoing cost for running a plant.

Expenditures Quantity Cost ($)

Raw materials 15,568,622.10

Operating labor 3,500,000.00

Maintenance, repairs and 25% capital 79047500

contingency expenditure

Laboratory testing 27% of labor 945,000.00

Office supply/expenses 8% capital 25295200

expenditure

Legal fees 10% of labor 350,000.00

Insurance 8% capital 25295200

expenditure

Supervision 35% of labor 1,225,000.00

Local taxes 8% of capital 25295200

expenditure

Miscellaneous/maintenance 8% capital 25295200

expenditure

Plant overheads 50% of labor 1,750,000.00

Electricity 1,470,000.00

Cooling water 300,000

Steam for heating 350,000

Total: $205,686,922.1
Total Annual Production

Product Production per year Production per year

($)

C2 18,967,122.07 2,807,134.066

C3 108,364,867.9 41,937,203.87

I-c4 25,197,773.97 14,488,720.03

N-c4 81,015,200.67 46,097,649.18

C5+ 423,217.5068 392,322.6288

LPG 490,623,188.8 284,561,449.5

TOTAL: 390,284, 479.3

FOREX: 1$= Php 52.50

Total Project Cost = Capital Expenditure

= $196860000

Total Annual Income

Income Tax:

Philippine’s income tax for Local Industrial Company is 30%

Net Income = Taxable income x 0.70

= 390,284,479.3 x 0.70

= $273,199,135.5

Net cash inflows = net income – operating cost

= $273,199,135.5 - $205,686,922.1

= $67,512,213.38

Economic Indicators

Payback Period

The payback period is the length of time required to recover the cost of an

investment. The payback period of a given investment or project is an important

determinant of whether to undertake the position or project, as longer payback periods

are typically not desirable for investment positions.

Payback Period = TCI / net cash inflows

= $402 546 922.1/$67,512,213.38

= 5.96 years

Return on Investment

A performance measure used to evaluate the efficiency of an investment or to

compare the efficiency of a number of different investments. ROI measures the amount

of return on an investment relative to the investment’s cost.

𝑔𝑎𝑖𝑛 𝑜𝑓 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡−𝑐𝑜𝑠𝑡 𝑜𝑓 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡

Rate of Investment = 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡

$273,199,135.5−$196860000
= $196860000

= 0.3878 or 38.78%

Rate of Return

A rate of return is the gain or loss on an investment over a specified time period,

expressed as a percentage of the investment’s cost.

𝑛𝑒𝑡 𝑐𝑎𝑠ℎ 𝑖𝑛𝑓𝑙𝑜𝑤𝑠

Rate of Return = 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 𝑒𝑥𝑝𝑒𝑛𝑑𝑖𝑡𝑢𝑟𝑒𝑠

$67,512,213.38
= $196860000

= 0.3429 or 34.29%

Net Present Value

Net Present Value(NPV) is a formula used to determine the present value of an

investment by the discounted sum of all cash flows received from the project.
 67512213.38 67512213.38 67512213.38 67512213.38
NPV= + + + – 196,860,000
(1.10)1 (1.10)2 (1.10)3 (1.10)4

NPV = $17,144,632.4
𝑚𝑎𝑠𝑠 𝑜𝑢𝑡
Overall efficiency = × 100
𝑚𝑎𝑠𝑠 𝑖𝑛

16022.8119𝑘𝑔/𝑑𝑎𝑦
= × 100
20000𝑘𝑔/𝑑𝑎𝑦

= 0.8011 or 80.11%
 Batangas State University
College of Engineering, Architecture and Fine Arts
Petroleum Engineering Department

PetE 521 – Process Plant Engineering

Final Requirement

El Wastani Petroleum Company

Submitted by:
Anico, Angelo Miguel A.
Pabico, Hannah R.

Submitted to:
Engr. Marvin A. Atienza
Instructor

May 24, 2018