Udeesha Tomar
AVP - Strategy and Solutions
Leading procurement research solutions across chemicals, materials, and food & beverages, with expertise in price forecasting and market analytics.
Butane Production by Fractional Distillation Method
Butane Production Cost Breakup by Fractional Distillation Method
This study analyzes Butane Production by Fractional Distillation Method, covering manufacturing, process flow, operating expenses, and financial considerations.
Last Updated: January, 2025
Written ByUdeesha Tomar
This report entails the detailed cost evaluation of butane production by fractional distillation method. The production of butane is initiated by the fractional distillation of crude oil. It is one of the initial gaseous compounds obtained at the top distillation tower during fractional distillation of crude oil at around 25 to 50 °C. It is then purified to produce butane as the end product.
Top Producers of Butane
- Exxon Mobil Corporation
- British Petroleum Plc.
- Total S.A.
- Air Liquide
- Royal Dutch Shell
Feedstock of Butane
Butane is a petrochemical compound obtained by processing crude oil that serves as its chief raw material. The procurement of crude oil is governed by various crucial factors, including the availability, processing, and extraction cost of crude oil, along with the production cost of butane and variation in its market prices, etc. Similarly, vital factors associated with its market dynamics, such as trade policies, transportation, governmental regulations, and stability in its supply chain, also influence its procurement around the world. Moreover, its demand observed in the petrochemical, rubber, resin, and chemical industries directly impacts its market growth and plays a significant role in governing its procurement across borders. Hence, all of these factors, including its demand, supply, and prices, altogether determine its procurement in the global market.
The project economic analysis provided in the report discusses a Germany-based plant:
- Manufacturing Process
- Process Flow
- Material Flow
- Material Balance
- Raw Material and Product's Specifications
- Raw Material Consumption
- Product and Co-Product Generation
- Capital Investment
- Land and Site Cost
- Offsites/Civil Works
- Equipment Cost
- Auxiliary Equipment Cost
- Contingency
- Engineering and Consulting Charges
- Working Capital
- Variable Cost
- Raw Material
- Utilities
- Fixed Cost
- Labor Requirement & Wages
- Overhead Expenses
- Maintenance Charges
- Financing Costs
- Interest on Working Capital
- Interest on Loans
- Depreciation Charges
- General Sales and Admin Costs
- Production Cost Summary
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- Executive Summary
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- Executive Summary
- Key Process Information
- Variable Cost Breakdown
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- Land and Site Cost Details
- Construction Cost Breakdown
- Equipment Cost Breakdown
- Techno-Economic Parameters
- Delivery Format
- Executive Summary
- Key Process Information
- Variable Cost Breakdown
- Conversion Cost Analysis
- Capital Investment Analysis
- Land and Site Cost Details
- Construction Cost Breakdown
- Equipment Cost Breakdown
- Techno-Economic Parameters
- Delivery Format
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