Is Natural Gas Vapor Recovery Profitable ?

 

Average Daily Recovery Rate of 70 MCF

Assume 2,000 BTU vapor at $8/MCF

Daily= 70 MCF ×2 (accounting for BTUs) ×$8/MCF = $1,120 daily

Monthly= $1,120/day ×30 days = $33,600 monthly

Annually= $33,600/month ×12 months = $403,200 annually

Is Recovery Profitable?

Financial Analysis for a Conventional VRU Project
Peak Capacity(Mcf/day) Installation & Capital Costs1 ($) O&M Costs ($/year) Value of Gas2 ($/year) Annual Savings ($) SimplePayback (months) Internal Rate of Return
25 $35,738 $7,367 $42,203 $34,836 13 94%
50 $46,073 $8,419 $84,406 $75,987 8 164%
100 $55,524 $10,103 $168,812 $158,709 5 286%
200 $74,425 $11,787 $337,625 $325,838 3 438%
500 $103,959 $16,839 $844,062 $827,223 2 796%
1 – Unit cost plus estimated installation of 75% of unit cost 2 – $9.25 x ½ peak capacity x 365, Assumed price includes Btu enriched gas (1.289 MMBtu/Mcf)

 

 

July 22, 2015 6:26 pm

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