CFC-01-205 CONSIDERATIONS FOR USING SURPLUS EQUIPMENT IN LOW SULFUR GASOLINE AND DIESEL PROJECTS

Description:

The low sulfur fuel regulations mandated by the federal government’s Environmental Protection Agency are approaching. January 1, 2004 for gasoline and January 1, 2006 for diesel. The economics of adding new Hydro- Processing Facilities to remove sulfur from existing gasoline blend streams for most refiners has a negative rate of return irrespective of the chosen technology. While refinery margins have been good in late 2000 and through the first half of 2001, managers and decision-makers are looking for ways to minimize the capital expenditures needed to meet these regulations. Revamps of existing units is being evaluated against new grass roots facilities and the use of surplus equipment is being considered to reduce the cost and enhance the project schedule. Surplus equipment is being considered not only in the revamp units but also in the new grass roots facilities as well. This paper addresses the economics, schedule impact, design, fit-for-service analysis, and maintenance considerations in using surplus equipment as a part of these projects.