INDUSTRY PROFILE #10
LIQUEFIED
PETROLEUM GAS
Prepared By
Jon I. Voltz
Reviewed By
Glenn H. Dale
John P. Hyde
Published By
VITA
1600 Wilson Boulevard, Suite 500
Arlington, Virginia 22209 USA
Tel: 703/276-1800 . Fax: 703/243-1865
Internet: pr-info@vita.org
Liquid Petroleum Gas
ISBN: 0-86619-297-2
[C]1988, Volunteers in Technical Assistance
INDUSTRY PROFILES
Introduction
This Industry Profile is one of a series briefly describing
small or medium-sized industries. The
Profiles provide basic information for starting
manufacturing plants in developing nations.
Specifically, they provide general plant descriptions,
financial, and technical factors for their
operation, and sources of information and expertise. The
series is intended to be useful in
determining whether the industries described warrant further
inquiry either to rule out or to
decide upon investment. The underlying assumption of these
Profiles is that the individual
making use of them already has some knowledge and experience
in industrial development.
Dollar values are listed only for machinery and equipment
costs, and are primarily based on
equipment in the United States. The price does not include
shipping costs or import-export taxes,
which must be considered and will vary greatly from country
to country. No other investment
costs are included (such as land value, building rental,
labor, etc.) as those prices also vary.
These items are mentioned to provide the investor with a
general checklist of considerations for
setting up a business.
IMPORTANT
These profiles should not be substituted for feasibility
studies. Before an investment is made in
a plant, a feasibility study should be conducted. This may
require skilled economic and
engineering expertise. The following illustrates the range
of questions to which answers must
be obtained:
*
What is the extent of the present demand
for the product, and how is it now being
satisfied?
*
Will the estimated price and quality of the product make it competitive?
*
What is the marketing and distribution
plan and to whom will the product be
sold?
*
How will the plant be financed?
*
Has a realistic time schedule for construction, equipment,
delivery, obtaining
materials and supplies, training of personnel, and the start-up time for
the plant
been
developed?
*
How are needed materials and supplies to
be procured and machinery and
equipment to be maintained and repaired?
*
Are trained personnel available?
*
Do adequate transportation, storage,
power, communication, fuel, water, and
other facilities
exist?
*
What management controls for design,
production, quality control, and other
factors
have been included?
*
Will the industry complement or
interfere with development plans for the area?
*
What social, cultural, environmental,
and technological considerations must be
addressed regarding manufacture and use of this product?
Fully documented information responding to these and many
other questions should be
determined before proceeding with implementation of an
industrial project.
Equipment Suppliers, Engineering Companies
The services of professional engineers are desirable in the
design of industrial plants even though
the proposed plant may be small. A correct design is one
that provides the greatest economy in
the investment of funds and establishes the basis of
operation that will be most profitable in the
beginning and will also be capable of expansion without
expensive alteration.
Professional engineers who specialize in industrial design
can be found be referring to the
published cards in various engineering magazines. They may
also be reached through their
national organizations.
Manufacturers of industrial equipment employ engineers familiar
with the design and installation
of their specialized products. These manufacturers are
usually willing to give prospective
customers the benefit of technical advice by those engineers
in determining the suitability of their
equipment in any proposed project.
VITA
Volunteers in Technical Assistance (VITA) is a private,
non-profit, volunteer organization
engaged in international development. Through its varied
activities and services, VITA fosters
self-sufficiency by promoting increased economic
productivity. Supported by a volunteer roster
of over 5,000 experts in a wide variety of fields, VITA is
able to provide high quality technical
information to requesters. This information is increasingly
conveyed through low-cost advanced
communication technologies, including terrestrial packet
radio and low-earth-orbiting satellite.
VITA also implements both long- and short-term projects to
promote enterprise development and
transfer technology.
LIQUEFIED PETROLEUM GAS
PREPARED BY: Jon I. Voltz
REVIEWED BY: John P. Hyde
Glenn H.
Dale
PRODUCT DESCRIPTION
1. The Product
Liquefied petroleum gas (LPG) is a class of petroleum
products
produced from natural gas or as a by-product from refined
crude
oil. Types of LPG available in the United States and
elsewhere
are commercial grade propane, butane, butane-propane mixed,
and
HD-5 (a propane for engine fuel).
2. The Facility
This profile describes two plants, operating with three
shifts
for 52 weeks per year. The smaller has an annual
manufacturing
capacity of 2,220,000 barrels; the larger has an annual
capacity
of 4,440,000 barrels.
The methods of LPG recovery fall into four general
classifications:
(1) absorption, (2) absorption plus turbo-expander, (3)
adsorption, and (4) compression. Absorption uses liquid such
as
naphtha or kerosene to recover LPG from gas. The rate of
recovery
can be increased by reducing the temperature. As a result,
oil
absorption plants often use refrigeration in the process.
LPG is distilled from the absorption oil by heating the oil.
It
is possible to recover virtually 100 percent of the propane
and
butane by maintaining a temperature of -40[degrees]C and by
controlling
the oil rate. The recovered LPG is fractionated into
separate
components such as propane and butane and must be further
purified to remove hydrogen sulfide, organic sulfur
compounds,
and water in order to meet specifications. Among the
purification
processes are: amine and caustic treatment, solid bed
dehydration,
and molecular sieve absorption.
Absorption is used in both lean recovery (recovery of gases
low
in LPG content, such as propane) and heavier recovery. An
oil
absorption plant is relatively easy to operate and maintain,
but
it requires more energy than the turbo-expander process.
The turbo-expander process recovers propane and butane by a
combination of compression and refrigeration, followed by
expansion
of the gas through a turbine. When the gas expands, it cools
to about -100[degrees]C. The turbo-expander process is used
when it is
desirable to recover ethane. The process requires less
energy but
more skill to maintain and operate than the absorption
process.
The absorption and turbo-expander processes are the two most
practical commercial ways of recovering LPG, and are used in
this
profile.
GENERAL EVALUATION
The success of this industry depends to a great extent on
the
availability of natural gas. Marketwise, the sales potential
for
LPG should be good, particularly in areas or homes where
natural
gas by direct pipeline or other cheaper fuels are not
available
locally. The fixed capital requirements are fairly moderate
in
comparison with the annual estimated profits, and only one
skilled worker is needed.
1. Outlook
A.
Economic
The economics is good if the natural gas from which much of
LPG
is manufactured is higher in the components of LPG. However,
available natural gas is becoming leaner in ethane and
heavier
products. Rich gas is defined as containing more than 5.0
gallons
of LPG components plus/1000 cu. ft. per day of produced gas.
B.
Technical
Most developments in LPG plants are in the acid gas removal
and
water removal section of the plants.
2. Manufacturing
Equipment Flexibility
Most plants can produce butane and propane, but the plants
may
not have adequate equipment to produce the purity required
or to
obtain the necessary recoveries.
3. Knowledge Base
The following information is required: The estimated
production
rate of the field over a period of years, the components of
the
gas with time, the hydrogen sulfide and carbon dioxide
content,
nitrogen content and the field pressure. For plant design, a
knowledge of thermodynamics is required.
4. Quality Control
Chromatographic analysis, a technique used to identify and
separate LPG from the gas stream, is very important. It is
also
used to test for and remove impurities from the LPG as well
as
fractionate the recovered LPG into its separate components.
5. Constraints and
Limitations
Ethane, propane, and butane are commodities used for fuel
and
chemical manufacturing. Seasonal changes in demand may
occur. The
products are explosive and most products for fuels contain
odorants
for detection. Plants must remove and handle the hazardous
hydrogen sulfide with care.
MARKET ASPECTS
1. Users
LPG is used in homes, restaurants, hotels, etc. (mostly as
utility gas), industrial plants, refineries, chemical
manufacturing,
and as engine fuel.
2. Suppliers
The source of LPG is about 2/3 from natural gas (mostly
ethane
and butane) and 1/3 from refineries.
3. Sales Channels
and Methods
The product is sold in bulk to distributors for sale to
ultimate
users. consumers include homes, restaurants, hotels,
trailers,
camps, boats, farms, and industrial plants.
4. Geographic Extent
of Market
Production capacity may limit this product to domestic
consumption,
but the possibility exists for export. (The U.S. LPG
Industry exports about 500 million gallons a year. In 1986
the
industry exported to 47 countries, with Mexico getting the
most.)
5. Competition
Sales of LPG are competitive where piped natural gas, wood
for
fuel, or other cheaper fuels are not readily available.
6. Market Capacity
An accurate estimate of market potential cannot be made
unless a
comprehensive survey of sales potential is undertaken,
because so
many variable factors come into play.
PRODUCTION AND PLANT REQUIREMENTS
Requirements
Annual Output:
Barrels
2,220,000
4,440,000
1. Infrastructure,
Utilities Small Plant
Medium Plant
Plant size
(cu. ft. per day) 50,000,000
100,000,000
Utilities
Investment
Equipment
Materials
Labor
2. Major Equipment
& Machinery Small Plant
Medium Plant
(units)
Tools &
Machinery
towers
3
accumulator
tanks 3
vent tank
lean oil tank
surge tank
heat
exchangers 2
condensers
2
coolers
3
recompressor
pumps
4
steam
generator
water cooler
piping and
valves
Support
equipment & parts
pickup truck
(*) TOTAL ESTIMATED COST
of equipment & machinery
$25,000,000
$40,000,000
completely installed
(*) Cost of major equipment only would be about 40 percent
of the
above.
(*) Based on $US 1987 prices. The costs provided are
estimates and
are given only to provide a general idea for machinery
costs.
They are not intended to be used as absolute prices. Costs
still
need to be determined on a case by case basis. In addition,
the
costs are for production grade purities only and do not
include
costs for extra purification systems.
3. Materials &
Supplies Small Plant
Medium Plant
Raw Materials
natural gas
(cu. ft. 18,250
36,500
Supplies
lubricants
& hand tools
absorber oil
maintenance
& spare parts
office supplies
gas, oil
& truck maintenance
Packaging
Normally not
much done. Perhaps
a small
amount in steel cylinders.
4. Labor
Small Plant
Medium Plant
Skilled
2/shift
Semiskilled
2/shift
Unskilled
2
Indirect
supervisor/manager
1
chemist
1
office
1
truck
driver 1
PROCESS DESCRIPTION
The diagram below shows a generalized flow scheme for LPG
recovery.
lpgx6.gif (540x540)
The natural gas containing the LPG is first treated to
remove the acid gases: hydrogen sulfide, carbon dioxide, and
carbonyl sulfide. The gas is then sent through a process to
remove the water content. Very low water contents are
required
for cryogenic processes.
The next part of the process is LPG recovery, which includes
absorption (refrigerated absorption), turbo-expander
(cascade
refrigeration), adsorption, and compression.
The final section of an LPG plant is the fractionation
facility.
The products to be produced and their purity will determine
the
size of this facility. For example, if n-butane is to be
produced
as a specialty, polymerization grade solvent, extensive
fractionation,
and adsorption processes may be required.
The final section of an LPG plant is the fractionation
facility. The products to be produced
and their purity will determine the size of this facility.
For example, if n-butane is to be
produced as a specialty, polymerization grade solvent,
extensive fractionation, and
absorption processes may be required.
REFERENCES
Unless otherwise stated, these addresses are in the United
States.
1. Technical Manuals
& Textbooks
Adams, J.L. and Boyer, W.C., What Makes a Good NGL Unit?
Vol. 60,
No. 5, Hydrocarbon Processing, May 1981, pp. 108-112.
Crum, F.S., Use J-T Plants for LPG Recovery (Joule-Thompson
Adiabatic Expansion - Alternate to Expander and
Refrigeration),
Vol. 160, No. 5, Hydrocarbon Processing, May 1981, pp.
113-117.
Kaura, M. L., Plot Plans Must Include Safety, Vol. 59, No.
7,
Hydrocarbon Processing, July 1980, pp. 183-194.
Kensell, W.W., How to Pick a Treating Plant, Vol. 58, No. 8,
Hydrocarbon Processing, August 1979, pp. 143-145.
Encyclopedia of Chemical Technology, Vol. 14, 3rd. Edition,
John
Wiley and Sons, New York, 1981.
Engineering Data Book, Ninth Edition, Gas Processor
Supplier's
Association, Tulsa, Oklahoma, 1972.
Liquefied Petroleum Gas Specifications and Test Methods, Gas
Processor Association, GPA Publ. 2140-75, Tulsa, Oklahoma.
ASTM Standard D 1835-76, Part 24, American Society for
Testing
and Materials, Philadelphia, Pennsylvania, 1978.
Storage and Handling of Liquefied Petroleum Gases, National
Fire
Protection Association, NFPA 58, Boston, Massachusetts,
1979.
Design and Construction of LP-Gas Installations at Marine
Terminals, Natural Gas Processing Plants, Refineries and
Tank
Farms, API Standard 2510., 4th Edition, American Petroleum
Institute, Washington, D.C., December, 1978.
LP Gas Market Facts, National LP-Gas Association, Oak Brook,
Illinois, 1977.
Process Economics Program Report No. 135, Oct. 1979, SRI
International,
Menlo Park, California 94025. This report includes plant
designs for turbo-expander, cascade refrigeration, and
refrigerated
absorption.
2. Periodicals
Oil and Gas Journal
1301 W. 22nd Street
Oak Brook, Illinois 60521 USA
Weekly Propane Newsletter
P.O. Box 5000, Suite 331
Delmar, California 92014 USA
3. Trade
Associations
National LP-Gas Association
1301 W. 22nd Street
Oak Brook, Illinois 60521 USA
National Petroleum Refiners Association
1899 L Street, NW
Washington, D.C. 20036 USA
4. Equipment
Suppliers, Engineering Companies
AMETEK
Heat Transfer Division
P. 0. Box 534004
Grand Prairie, Texas 75053 USA
Eastern Tank Fabricators, Inc.
74 Plandome Road
Manhasset, New York 11030 USA
Atlas Copco Comptec, Inc.
Department A
20 School Road
Voorheesville, New York 12186 USA
5. Directories
Thomas Register
Thomas Publishing Company
One Penn Plaza
New York, New York 10001 USA
6. VITA Venture
Services
VITA Venture Services, a subsidiary of VITA, provides
commercial
services for industrial development. This fee-for-service
includes technology and financial information, technical
assistance,
marketing, and joint ventures. For further information,
contact VITA.
`INDUSTRY PROFILE SERIES'
VITA is pleased to present this series of industrial
profiles.
These Profiles provide basic information for starting
manufacturing
plants in developing nations. Specifically, they provide
general
plant description, financial, and technical factors for
their
operation, and sources of information and expertise. Dollar
values
are listed only for machinery and equipment costs, and are
primarily based on equipment in the United States. The price
does
not include shipping costs or import-export taxes, which
must be
considered and will vary greatly from country to country. No
other
investment costs are included (such as land value, building
rental,
labor, etc.) as those prices also vary.
The series is intended to be useful in determining whether
the
industries described warrant further inquiry either to rule
out or
to decide upon investment. The underlying assumption of
these
Profiles is that the individual making use of them already
has some
knowledge and experience in industrial development.
These profiles should not be substituted for feasibility
studies.
Before an investment is made in a plant, a feasibility study
should
be conducted. Each profile contains a list of questions to
which
answers must be obtained before proceeding with
implementation of
an industrial project.
All profiles are available in English only. They are priced
at
$9.95 each. You may take advantage of the introductory offer
and
order any three Profiles for just $25.00 or order the entire
set of
nineteen Profiles for a bargain price of only $150.00.
BAKED, LEAVENED BREADS
Richard J. Bess
Describes a small bakery operating with a single shift and
producing 100 tons of baked products a year. It also
describes a
medium-sized plant operating on the same basis but producing
250
tons of baked goods a year.
(IP #19) 6pp.
BLUE JEANS
Edward Hochberg
Describes one plant operating with one shift and making 15,
000
dozens of blue jeans a year, and another that produces
22,000
dozens a year.
(IP #6) 8pp.
DIMENSION HARDWOOD
Nicolas Engalichev
Describes a medium-sized mill operating with one shift that
produces 4,500 cubic meters of dimension hardwood per year.
Some
information is also provided for a mill twice as large.
(IP #16) 8pp.
FISH OIL AND FISH MEAL
S. Divakaran
Describes two plants. The first is a 20-ton per day plant
operating
with an eight-hour shift and producing 8,000 tons of fish
meal and
4,000 tons of fish oil a year. The second is a 40-ton plant
operating an eight-hour shift and producing 8,000 tons of
fish oil
and 16,000 tons of meal per year.
(IP # 8) 8pp.
GLASS CONTAINERS (BATCH PROCESS)
William B. Hillig
Describes small batch production plants with a work force of
10 to
50 people that produce 500 to 25,000 containers per day.
(IP #18) 8pp.
GLUCOSE FROM CASSAVA STARCH
Peter K. Carrell
Describes a plant that can operate 250 days a year on a
three-shift
continuous basis and produce 2,500 tons of glucose syrup.
(IP #17) 8pp.
LIQUID PETROLEUM GAS
Jon I. Voltz
Describes two plants, operating with three shifts for 52
weeks per
year. The smaller has an annual manufacturing capacity of
2,220,000
barrels; the larger plant has an annual capacity of
4,440,000
barrels.
(IP #12) 8pp.
MEN'S DRESS SHIRTS
Edward Hochberg
Describes one small plant operating with one shift and
manufacturing
15,000 dozen men's dress shirts a year. It also describes a
larger plant running a single shift and manufacturing 22,000
dozen
shirts a year.
(IP #13) 8pp.
MEN'S WASH AND WEAR PANTS
Edward Hochberg
Describes one plant operating with one shift and producing
15,000
dozens pairs of pants a year, and another that produces
22,000
dozens a year.
(IP # 4) 8pp.
MEN'S WASH AND WEAR SHIRTS
Edward Hochberg
Describes a plant operating with one shift, manufacturing
15,000
dozen men's wash and wear shirts a year, and another that
manufactures
22,000 dozen shirts a year.
(IP # 5) 7pp.
MEN'S WORK SHIRTS
Edward Hochberg
Describes one plant operating with one shift and
manufacturing
15,000 dozen men's shirts a year. It also describes a larger
plant
running a single shift and producing 22,000 dozen shirts a
year.
(IP # 2) 8pp.
PAINT MANUFACTURING
Philip Heiberger
Describes a small plant that will serve local needs, mainly
in the
trade-sales sector. Its output may exceed 4,000 liters per
week
(L/wk).
(IP #14) 10pp.
PORTABLE METALLIC STOVE
Andre Charette
Describes a facility that accommodates two workers, a work
table,
and storage of materials and products. The hammer and chisel
method
permits production of five stoves daily. The tooling-aids
permits
production of up to 25 units daily.
(IP #10) 9pp.
PORTLAND CEMENT
Dave F. Smith & Alfred Bush
Describes a small plant producing 35,000 metric tons of
cement a
year.
(IP # 9) 10pp.
ROUGH-SAWN LOGS
Nicolas Engalichev
Describes plants (sawmills) operating with one shift that
can
produce 10,000 and 30,000 cubic meters (cu m) of product per
year.
(IP #15) 8pp.
SMALL CERAMICS PLANT
Victor R. Palmeri
Describes a small plant operating with one shift and
producing
16,000 pieces a year. It also describes a medium-sized plant
running a single shift producing about 80,000 units a year.
(IP #11) 8pp.
STARCH, OIL, AND FEED FROM SORGHUM GRAIN
Peter K. Carrell
Describes a small plant operating with three shifts on a
seven-day
work schedule and processing about 200 tons of sorghum a
day. Two
shifts are down per week for maintenance. This facility may
be
considered a heavy industry because of the emission from the
boiler
and dryers and the noise from its high speed machinery.
(IP # 1) 8pp.
UNFERMENTED GRAPE JUICE
George Rubin
Describes a plant operating with one shift and producing
125,000
gallons of grape juice a year, and another that produces
260,000
gallons a year.
(IP # 7) 8pp.
WOMEN'S BROADCLOTH DRESSES
Edward Hochberg
Describes a plant operating with one shift and manufacturing
72,000
women's dresses a year (1,440/week, 288/day). It also
describes a
larger plant-running a single-shift and producing
104,000 dresses a year.
(IP # 3) 8pp.
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