SUMMARY OF MERITS OF REEMPLOYMENT OF EXISTING PROCESSING PLANTS

  • Cost savings vs. new fabrication – on a fully refurbished basis, relocation of existing plant typically costs approximately 60 – 70 % of new equipment.

  • Significantly shortened time to start up – existing plant can be refurbished, relocated and started up typically 6 to 12 months sooner than new equipment.

  • Ability to acquire incremental capacity for little or no incremental cost – surplus equipment can often be acquired with capacity in excess of base case design requirements for little or no increment of cost vs. acquiring equipment with no excess capacity. Incremental capacity can be utilized to seize project upside economic potential.

  • Surplus capacity can provide for very robust base case design vs. new construction – new construction is typically designed to handle base case volume as a maximum, and design must be right in order to perform at base case. Surplus equipment, if purchased with excess capacity, can perform robustly at base case conditions.

  • Existing plants have proven operating history and design and less risk of hidden design flaws or fabrication flaws.

  • Reutilization of existing plant(s) significantly reduces time and cost of front end engineering required for process, mechanical and civil design.
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