Effect of lower feedstock prices on economics of MTBE complex

Faizur Rahman; Syed Halim Hamid; Mohammed Ashraf Ali

doi:10.1080/00908319608908747

Effect of lower feedstock prices on economics of MTBE complex

Faizur Rahman^*
, Syed Halim Hamid
, Mohammed Ashraf Ali

^*Corresponding author for this work

Research output: Contribution to specialist publication › Article

Abstract

Economic evaluation of the methyl tertiary butyl ether (MTBE) complex was carried out staring from n-butane and by captive production of methanol from natural gas. The processing steps consist of isomerization of n-butane to isobutane, dehydrogenation of isobutane to make isobutene, and finally, the reaction of isobutene with methanol to produce MTBE. Two different plant sizes were considered, and the effect of 30% lower feedback prices on profitability was studied. It was found that the raw materials cost is a dominant component composing about 55% of the total production cost. An internal rate of return of 19% could be realized for 500.000 tons per annum MTBE complex based on economic data in mid-1993. The payback period estimated at this capacity was 3.8 year, and the break-even capacity was 36.6%.

Original language	English
Pages	57-64
Number of pages	8
Volume	18
No	1
Specialist publication	Energy Sources
DOIs	https://doi.org/10.1080/00908319608908747
State	Published - 1996

Bibliographical note

Funding Information:
MTBE is a high-octane blending agent for motor gasoline. It is a combustible, nonoxidizable, clear, and colorless liquid of low viscosity with a distinct odor. The research octane number (RON) and the motor octane number (MON) of MTBE are in the ranges 115-135 and 98-110, respectively (SRI International, 1994). Addition of MTBE increases the RON and MON of a gasoline and improves the engine efficiency of automobiles, especially in low-speed acceleration and cold-start conditions. This is because the low boiling point of MTBE provides much higher front-end octane to the low-boiling portion of the gasoline. MTBE has a favorable effect on distillation and improves driveability and cold-engine operation (Piel, 1988). MTEiE does not decrease the lead susceptibility of lead alkyl compounds Received 30 November 1994; accepted 15 March 1995. The authors wish to acknowledge the support of the Research Institute of King Fahd University of Petroleum and Minerals. Address correspondence to Faizur Rahman, King Fahd University of Petroleum and Minerals, Box 1634, Dhahran 31261. Saudi Arabia.

Keywords

Cash flow analysis
Economics
MTBE
Production cost
Profitability

ASJC Scopus subject areas

General Chemical Engineering
Fuel Technology
Energy Engineering and Power Technology

Access to Document

10.1080/00908319608908747

Cite this

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title = "Effect of lower feedstock prices on economics of MTBE complex",

abstract = "Economic evaluation of the methyl tertiary butyl ether (MTBE) complex was carried out staring from n-butane and by captive production of methanol from natural gas. The processing steps consist of isomerization of n-butane to isobutane, dehydrogenation of isobutane to make isobutene, and finally, the reaction of isobutene with methanol to produce MTBE. Two different plant sizes were considered, and the effect of 30\% lower feedback prices on profitability was studied. It was found that the raw materials cost is a dominant component composing about 55\% of the total production cost. An internal rate of return of 19\% could be realized for 500.000 tons per annum MTBE complex based on economic data in mid-1993. The payback period estimated at this capacity was 3.8 year, and the break-even capacity was 36.6\%.",

keywords = "Cash flow analysis, Economics, MTBE, Production cost, Profitability",

author = "Faizur Rahman and Hamid, \{Syed Halim\} and Ali, \{Mohammed Ashraf\}",

note = "Funding Information: MTBE is a high-octane blending agent for motor gasoline. It is a combustible, nonoxidizable, clear, and colorless liquid of low viscosity with a distinct odor. The research octane number (RON) and the motor octane number (MON) of MTBE are in the ranges 115-135 and 98-110, respectively (SRI International, 1994). Addition of MTBE increases the RON and MON of a gasoline and improves the engine efficiency of automobiles, especially in low-speed acceleration and cold-start conditions. This is because the low boiling point of MTBE provides much higher front-end octane to the low-boiling portion of the gasoline. MTBE has a favorable effect on distillation and improves driveability and cold-engine operation (Piel, 1988). MTEiE does not decrease the lead susceptibility of lead alkyl compounds Received 30 November 1994; accepted 15 March 1995. The authors wish to acknowledge the support of the Research Institute of King Fahd University of Petroleum and Minerals. Address correspondence to Faizur Rahman, King Fahd University of Petroleum and Minerals, Box 1634, Dhahran 31261. Saudi Arabia.",

year = "1996",

doi = "10.1080/00908319608908747",

language = "English",

volume = "18",

pages = "57--64",

journal = "Energy Sources",

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T1 - Effect of lower feedstock prices on economics of MTBE complex

AU - Rahman, Faizur

AU - Hamid, Syed Halim

AU - Ali, Mohammed Ashraf

N1 - Funding Information: MTBE is a high-octane blending agent for motor gasoline. It is a combustible, nonoxidizable, clear, and colorless liquid of low viscosity with a distinct odor. The research octane number (RON) and the motor octane number (MON) of MTBE are in the ranges 115-135 and 98-110, respectively (SRI International, 1994). Addition of MTBE increases the RON and MON of a gasoline and improves the engine efficiency of automobiles, especially in low-speed acceleration and cold-start conditions. This is because the low boiling point of MTBE provides much higher front-end octane to the low-boiling portion of the gasoline. MTBE has a favorable effect on distillation and improves driveability and cold-engine operation (Piel, 1988). MTEiE does not decrease the lead susceptibility of lead alkyl compounds Received 30 November 1994; accepted 15 March 1995. The authors wish to acknowledge the support of the Research Institute of King Fahd University of Petroleum and Minerals. Address correspondence to Faizur Rahman, King Fahd University of Petroleum and Minerals, Box 1634, Dhahran 31261. Saudi Arabia.

PY - 1996

Y1 - 1996

N2 - Economic evaluation of the methyl tertiary butyl ether (MTBE) complex was carried out staring from n-butane and by captive production of methanol from natural gas. The processing steps consist of isomerization of n-butane to isobutane, dehydrogenation of isobutane to make isobutene, and finally, the reaction of isobutene with methanol to produce MTBE. Two different plant sizes were considered, and the effect of 30% lower feedback prices on profitability was studied. It was found that the raw materials cost is a dominant component composing about 55% of the total production cost. An internal rate of return of 19% could be realized for 500.000 tons per annum MTBE complex based on economic data in mid-1993. The payback period estimated at this capacity was 3.8 year, and the break-even capacity was 36.6%.

AB - Economic evaluation of the methyl tertiary butyl ether (MTBE) complex was carried out staring from n-butane and by captive production of methanol from natural gas. The processing steps consist of isomerization of n-butane to isobutane, dehydrogenation of isobutane to make isobutene, and finally, the reaction of isobutene with methanol to produce MTBE. Two different plant sizes were considered, and the effect of 30% lower feedback prices on profitability was studied. It was found that the raw materials cost is a dominant component composing about 55% of the total production cost. An internal rate of return of 19% could be realized for 500.000 tons per annum MTBE complex based on economic data in mid-1993. The payback period estimated at this capacity was 3.8 year, and the break-even capacity was 36.6%.

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KW - Production cost

KW - Profitability

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JF - Energy Sources

ER -

Effect of lower feedstock prices on economics of MTBE complex

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

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