Chemical Engineering Plant Equipment Cost

Figure 31.1 Chemical Engineering Plant Equipment Cost Index (CEPCI) from 1990 to 2012 (Chemical Engineering, 2012).

Chemical Engineering, 2012. Chemical engineering plant equipment cost index. Chem. Eng. 119 (4), 60. 

Table 9-42 presents information on some cost indices for the United States. Engineering News-Record updates its construction-cost index in March, June, September, and December. The Oil and Gas Journal gives the Nelson-Farrar refinery indices in the first issue of each quarter. The Chemical Engineering plant-cost index and Marshall and Swift equipment-cost index are given in each issue of the pubhcation Chemical Engineering. Derivation of the base values is referred to in the respective publications. 

Chemical Engineering Plant Cost Index [42]. Probably the most commonly used cost adjusting index printed/updated monthly is in Chemical Engineering Magazine send has established continuity over many years. Its breakdo vn component costs apply to plants and plant equipment/systems. 

Chemical Engineering Plant Cost Index and Marshall and Sivift (M S) Equipment Cost Index appear regularly in Chem.ical Engineeiing. 

Chemical Engineering Plant Cost Index, 47 Cost accumulation, diagram, 49 Equipment, 45... 

Many different types of cost indexes are published regularly. Some of these can be used for estimating equipment costs others apply specifically to labor, construction, materials, or other specialized fields. The most common of these indexes are the Marshall and Swift all-industry and process-industry equipment indexes, the Engineering News-Record construction index, the Nelsotl-Fatrar refinery construction index, and the Chemical Engineering plant cost index. Table 3 presents a list of values for various types of indexes over the past 15 years. 

For use with process-equipment estimates and chemical-plant investment estimates, the Marshall and Swift equipment cost indexes and the Chemical Engineering plant cost indexes are recommended. These two cost indexes give very similar results, while the Engineering News-Record construction cost index, relative with time, has increased much more rapidly than the other two because it does not include a productivity improvement factor. Similarly, the Nelson-Farrar refinery construction index has shown a very large increase with time and should be used with caution and only for refinery construction. 

A composite index for the United States process plant industry is published monthly in the journal Chemical Engineering this is the Chemical Engineering Plant Cost Index (CEPCI), usually referred to as the CE index. Chemical Engineering also publishes the Marshall and Swift index (M S equipment cost index). 

Marshall and Swift All-Industry Equipment Cost Index and Chemical Engineering Plant Cost Index (1989-2004)... 

In order to calculate the CO2 avoidance costs, the capital investment costs are first calculated using a conceptual cost estimation method with an accuracy of 40%. In this method, the main equipment costs are estimated. The costs for blowers, the heat exchanger and the columns have been calculated using correlations reported by Seider et al. [24] and Loh and Lyons [25] and are updated to costs in 2010 using the Chemical Engineering Plant Cost Index (CEPCI). 

All indices in Figure 7.3 show similar inflationary trends with time. The indices most generally accepted in the chemical industry and reported in the back page of every issue of Chemical Engineering are the Marshall and Swift Equipment Cost Index and the Chemical Engineering Plant Cost Index. 

Table 7.4 Values for the Chemical Engineering Plant Cost Index and the Marshall and Swift Equipment Cost Index from 1991 to 2006...

CEPCI (Chemical Engineering Plant Cost Index), 186. 188 corrosive environments, 202-204 cost data, sources of, 182 equipment cost attribute, 182 equipment summary, PFD, 19-20 inflation adjustment, 186-187 manufacturing vessels, 207-208 Marshall and Swift Equipment Cost Index, 186. 188 MOCs (materials of construction), 202-208 module costing technique, 192-193 pressure factors, 197-202 relative costs of metals, 206 weld efficiency, 198 Capitalized cost, 314 Capitalized cost method, 314-316 Carbon steels, equipment cost, 205 Carnot efficiency, 235 Cascade diagrams... 

Investment and production costs are significantly affected by inflation. Inflation in the chemical industry is represented by the Chemical Engineering Plant Cost Index (CEPCI Fig. 31.1). The basic equation for using this index for identical equipment is ... 

The CE Plant Cost Index (7) is also pubHshed monthly in the Chemical Engineering]omaci A. Index values are given for various categories of equipment, installation, labor, building, and supervision, as well as a composite plant cost index. The composite index for complete plant costs, tabulated in Table 1, is frequentiy used for the translation of purchased equipment costs, even though the equipment component of the index would be better. 

The contribution of each of these items to the total capital cost is calculated by multiplying the total purchased equipment by an appropriate factor. As with the basic Lang factor , these factors are best derived from historical cost data for similar processes. Typical values for the factors are given in several references, Happle and Jordan (1975) and Garrett (1989). Guthrie (1974), splits the costs into the material and labour portions and gives separate factors for each. In a booklet published by the Institution of Chemical Engineers, IChemE (1988), the factors are shown as a function of plant size and complexity. 

Winfield, M.D., Dryden, C.E. Chart Gives Equipment Plant Costs, Chemical Engineering, Dec. 24, 1962, PP- 100-104. 

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