In this post, I want to share to you how to estimate total capital cost of flare system, especially installation cost. In previous post, I already shared a step-by-step method on how to estimate purchase equipment cost of flare system.
Installation cost of flare system covers direct installation costs and indirect installation costs.
Direct installation costs include equipment handling, erection, foundations, supports, piping, insulation, painting, electrical work, site preparation, and building installation as required. Indirect installation costs include engineering, construction and field expenses, contractor fees, as well as costs associated with start-up and performance testing. Direct and indirect installation costs are usually calculated as a factor of Purchase Equipment Cost (PEC). The factors are presented in table below.
Note:
- PEC = Purchased Equipment Cost
- Direct Cost = Purchased Equipment Cost + Direct Installation Cost
These costs assume steam is available at the facility, either purchased or generated by an existing boiler. If new steam generation is needed for a steam-assisted flare, those costs can be included in site preparation. If buildings are required for controls or monitoring equipment, include the expense under building costs.
I hope you find this post useful!
References:
- Section 3 VOC Controls, Chapter 1 Flares