LPG Production from Natural gas

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LPG Production Cost Breakup from Natural gas

This report provides the cost structure of LPG production by natural gas processing. In this method, the crude oil recovered from the oil wells is sent to the gas trap where it is separated into wet gas and oil.

Last Updated: January, 2025

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Written ByVikas Jha

This report provides an extensive cost evaluation of LPG production from natural gas. The manufacturing process of LPG involves recovering it from "wet" natural gas, which contains condensable heavy petroleum compounds, through absorption. The gas undergoes distillation to separate the lighter fractions. After distillation, the product is treated to remove impurities such as hydrogen sulfide, carbon dioxide, and water. The final LPG product is transported via pipelines and specially designed seagoing tankers for distribution.

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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About the Author

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Vikas Jha

Vice President - Sales and Operations

Driving growth and operational excellence at Procurement Resource by partnering with global enterprises on procurement consulting and client solutions, with expertise in scaling research operations and delivering actionable commodity intelligence.

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  • 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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  • 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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Enterprise

$4799.00

$4079.00

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  • 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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