Liquefied Natural Gas Essay Example | Topics and Well Written Essays - 1750 words

Liquefied Natural Gas - Essay Example The machines that add most to the capital cost include the pumps, compressors, furnace, heat exchangers, vessels, towers, and trays. All these are required to begin the operation of the plant; therefore, they contributed to the fixed costs of the fall semester. For easier analysis, the capital costs are divided into the various machines that are required. The first division is on the pumps and compressors. The pump purchased was needed to increase the pressure of butane to the specifications of the pipes. The total cost of the pump was $1,165, 217.29. A total of eleven compressors were required, each one having a particular role to perform. The total cost of all the compressors was $159,473,108.70. There was also a turbine needed for power generation from one of the vessels when the pressure is decreased. The cost of the turbine was $600,086.96. The three components had a total cost of $ 161,273,369.57. The other facility that contributes to the capital cost is the furnaces. In total, ten furnaces are necessary to begin the operation of the plant. The total cost of the furnaces was $ 1,003,645.43. The cost of the furnaces in 2017 is also available considering an inflation rate of 3%. The next equipment purchased was the heat exchangers that contributed a total cost of $ 619,589.79. Two heat exchangers were acquired in the fall semester, while the rest of the exchangers, we acquired later. During the semester, thirteen vessels were also obtained. The total cost of all these vessels was $ 865,260.46. Towers and trays were also purchased during the period, contributing a total of $ 714,891.09. Five trays were purchased to begin the operation. There were also some miscellaneous costs for the acquisition of the sulfur plant and the tankers. The sulfur plant costs $ 1,232,960.00, which includes $ 100,000 for the plant plus the operating costs. Four tankers were also required, with each tanker costing $ 185 million.