Production Cost Report | Chemicals

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Butane Production Cost Breakup by Fractional Distillation Method

Details: Germany - based plant Q2 2024  | From $ USD

This report entails the detailed cost evaluation of butane production by fractional distillation method. The production of butane is initiated by the fractional distillation of crude oil. It is one of the initial gaseous compounds obtained at the top distillation tower during fractional distillation of crude oil at around 25 to 50 °C. It is then purified to produce butane as the end product.

Top Producers of Butane

  • Exxon Mobil Corporation
  • British Petroleum Plc.
  • Total S.A.
  • Air Liquide
  • Royal Dutch Shell

Feedstock of Butane

Butane is a petrochemical compound obtained by processing crude oil that serves as its chief raw material. The procurement of crude oil is governed by various crucial factors, including the availability, processing, and extraction cost of crude oil, along with the production cost of butane and variation in its market prices, etc. Similarly, vital factors associated with its market dynamics, such as trade policies, transportation, governmental regulations, and stability in its supply chain, also influence its procurement around the world. Moreover, its demand observed in the petrochemical, rubber, resin, and chemical industries directly impacts its market growth and plays a significant role in governing its procurement across borders. Hence, all of these factors, including its demand, supply, and prices, altogether determine its procurement in the global market.

The project economic analysis provided in the report discusses a Germany-based plant:

  • Manufacturing Process
    • Process Flow
    • Material Flow
    • Material Balance
  • Raw Material and Product's Specifications
    • Raw Material Consumption
    • Product and Co-Product Generation
    • Capital Investment
  • Land and Site Cost
    • Offsites/Civil Works
    • Equipment Cost
    • Auxiliary Equipment Cost
    • Contingency
    • Engineering and Consulting Charges
    • Working Capital
  • Variable Cost
    • Raw Material
    • Utilities
  • Fixed Cost
    • Labor Requirement & Wages
    • Overhead Expenses
    • Maintenance Charges
  • Financing Costs
    • Interest on Working Capital
    • Interest on Loans
  • Depreciation Charges
  • General Sales and Admin Costs
  • Production Cost Summary
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Report Content

Key Process Information

Evaluation of significant technical parameters along with process descriptions such as:

  • Consumption of Raw Material
  • Product Creation
  • Block Flow Diagram
  • Description of the Manufacturing Facility

Utilities Consumption

Evaluation of utilities consumed during the entire process based on:

  • Consumption per unit of product generated
  • Utility cost split and share of each utility in the total cost

Process Flow Diagram

Representation of various operations involved including:

  • Step-wise process
  • Utility consumption in each operation

Capital Cost Analysis

In-depth analysis of costs involved in setting up a new manufacturing unit, including:

  • Cost of Building a Process Unit
  • Cost of Setting Up the Infrastructure
  • Working Capital
  • Commissioning & Start-Up of the Plant

Implementation Schedule

Time frame of the project design, which includes:

  • Plant Start-Up
  • Plant Construction
  • Engineering Fundamentals
  • Raw Material Procurement

Construction Cost Details

Detailed analysis of costs involved in the operation of various functional units in the process unit and infrastructure.

Operating Cost Analysis

Evaluation of costs associated with the production of the final product, namely:

  • Procurement of Raw Materials
  • Consumption of Utilities
  • Fixed Costs
  • Depreciation

Economic Analysis

Analysis of the way in which process economics are impacted by plant capacity.

  • Construction Cost
  • Working Capital
  • Fixed and Variable Operating Costs
  • Corporate Overhead
  • Depreciation

Customized Analyses

Detailed cost estimates of any industrial plant depending on your requirements, including plant capacity and location as per the need.

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