Economic evaluation of aromatics production, a case study for financial model application in petrochemical projects
Economics is the engine that drives industry. For complete understanding of project economics four major items must be discussed; capital requirements, operating expenses, cash flow and profitability measures. Petrochemicals in general are compounds and polymers derived directly or indirectly from p...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Egyptian Petroleum Research Institute
2017-12-01
|
| Series: | Egyptian Journal of Petroleum |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S1110062114200432 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849471595279548416 |
|---|---|
| author | H.R. Omran S.M. EL-Marsafy F.H. Ashour E.F. Abadir |
| author_facet | H.R. Omran S.M. EL-Marsafy F.H. Ashour E.F. Abadir |
| author_sort | H.R. Omran |
| collection | DOAJ |
| description | Economics is the engine that drives industry. For complete understanding of project economics four major items must be discussed; capital requirements, operating expenses, cash flow and profitability measures.
Petrochemicals in general are compounds and polymers derived directly or indirectly from petroleum. C6–C8 aromatics are petrochemical intermediates that include benzene, toluene and xylenes.
This research work aims to execute a financial model template using MICROSOFT EXCEL PROGRAM which can be applied on any industry to check its profitability.
Two configurations for aromatics production had been considered as a case study for model application, Configuration I for the production of benzene, toluene and xylenes and Configuration II for the production of benzene and para xylene only based on 3 million tons of straight run naphtha feedstock. In addition, the economic effect of the integration between Configuration II and MIDOR refinery had been studied.
The designed and initiated financial model performed in this paper is applied on a real and existing petrochemical project to check its validation. The economic indicators calculated using the initiated financial model were found to match with the actual status of the project.
The research resulted in; Configuration I and II are not profitable under the mentioned basis. The integration between Configuration II and MIDOR refinery is more profitable than the standalone one.
Configurations I and II shall be feasible if the quantity of naphtha feedstock increases to 70,000 and 5500 thousand tons per year respectively. Configurations I and II shall be feasible if the discount in naphtha feedstock price reaches to 9% and 4.5% respectively. |
| format | Article |
| id | doaj-art-e8b1a67a1d774c46ae9a016e30cbe6e5 |
| institution | Kabale University |
| issn | 1110-0621 |
| language | English |
| publishDate | 2017-12-01 |
| publisher | Egyptian Petroleum Research Institute |
| record_format | Article |
| series | Egyptian Journal of Petroleum |
| spelling | doaj-art-e8b1a67a1d774c46ae9a016e30cbe6e52025-08-20T03:24:47ZengEgyptian Petroleum Research InstituteEgyptian Journal of Petroleum1110-06212017-12-0126485586310.1016/j.ejpe.2015.03.013Economic evaluation of aromatics production, a case study for financial model application in petrochemical projectsH.R. Omran0S.M. EL-Marsafy1F.H. Ashour2E.F. Abadir3Egyptian Petrochemical Holding Company, EgyptCairo University, Faculty of Engineering, Chemical Engineering Department, EgyptCairo University, Faculty of Engineering, Chemical Engineering Department, EgyptCairo University, Faculty of Engineering, Chemical Engineering Department, EgyptEconomics is the engine that drives industry. For complete understanding of project economics four major items must be discussed; capital requirements, operating expenses, cash flow and profitability measures. Petrochemicals in general are compounds and polymers derived directly or indirectly from petroleum. C6–C8 aromatics are petrochemical intermediates that include benzene, toluene and xylenes. This research work aims to execute a financial model template using MICROSOFT EXCEL PROGRAM which can be applied on any industry to check its profitability. Two configurations for aromatics production had been considered as a case study for model application, Configuration I for the production of benzene, toluene and xylenes and Configuration II for the production of benzene and para xylene only based on 3 million tons of straight run naphtha feedstock. In addition, the economic effect of the integration between Configuration II and MIDOR refinery had been studied. The designed and initiated financial model performed in this paper is applied on a real and existing petrochemical project to check its validation. The economic indicators calculated using the initiated financial model were found to match with the actual status of the project. The research resulted in; Configuration I and II are not profitable under the mentioned basis. The integration between Configuration II and MIDOR refinery is more profitable than the standalone one. Configurations I and II shall be feasible if the quantity of naphtha feedstock increases to 70,000 and 5500 thousand tons per year respectively. Configurations I and II shall be feasible if the discount in naphtha feedstock price reaches to 9% and 4.5% respectively.http://www.sciencedirect.com/science/article/pii/S1110062114200432Petrochemical projects economicsFinancial modelAromatics and aromatics production configurations |
| spellingShingle | H.R. Omran S.M. EL-Marsafy F.H. Ashour E.F. Abadir Economic evaluation of aromatics production, a case study for financial model application in petrochemical projects Egyptian Journal of Petroleum Petrochemical projects economics Financial model Aromatics and aromatics production configurations |
| title | Economic evaluation of aromatics production, a case study for financial model application in petrochemical projects |
| title_full | Economic evaluation of aromatics production, a case study for financial model application in petrochemical projects |
| title_fullStr | Economic evaluation of aromatics production, a case study for financial model application in petrochemical projects |
| title_full_unstemmed | Economic evaluation of aromatics production, a case study for financial model application in petrochemical projects |
| title_short | Economic evaluation of aromatics production, a case study for financial model application in petrochemical projects |
| title_sort | economic evaluation of aromatics production a case study for financial model application in petrochemical projects |
| topic | Petrochemical projects economics Financial model Aromatics and aromatics production configurations |
| url | http://www.sciencedirect.com/science/article/pii/S1110062114200432 |
| work_keys_str_mv | AT hromran economicevaluationofaromaticsproductionacasestudyforfinancialmodelapplicationinpetrochemicalprojects AT smelmarsafy economicevaluationofaromaticsproductionacasestudyforfinancialmodelapplicationinpetrochemicalprojects AT fhashour economicevaluationofaromaticsproductionacasestudyforfinancialmodelapplicationinpetrochemicalprojects AT efabadir economicevaluationofaromaticsproductionacasestudyforfinancialmodelapplicationinpetrochemicalprojects |