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Ethylene Margin Calculation

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Top 100 Contributor
Points 40
j4nwar Posted: 10 Mar 2009 22:49
Can anyone help me figure out how ethylene margin is calculated? If I know the cost of the main feedstock (i.e. ethane, $/gal)) and the price of the ethylene ($/lb), how do I calculate the margin from my ethylene production? I am aware that there are different plant efficiencies, etc, but let's assume a typical 500 kt olefin plan with 90% utilization. Thanks for your help!
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Top 25 Contributor
Points 105

Calculating the cost of ethylene is not straight forward. You need to calculate the co-products made with the ethylene and credit them to the cost calculation. For this, you need the yield pattern for the cracker. ICIS runs a training courses and the The Next Level course (which follows the Beginner's course) run in Europe and the US devotes nearly half a day to the cost of production and profitability including an exercise that involves calculating an ethylene margin. The link below gives more details: http://www.icistrainingsite.com/p/2757

 

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