A Consideration of Approximate C. I. F. Cost of Imported LPG

Abstract

The share of imported LPG in the total energy consumption in Japan has been increasingly encouraged by the future possibilities of larger volume consumption-as in the case of LNG-for power generation and other industrial uses. LPG is a liquefied gas similar to LNG in many aspects but differing markedly in composition, which consists of C3 and C4 fractions, and in cost factors. Since the operating temperature of LPG under atmospheric pressure is not lower than -40°C as opposed to about -160°C for LNG, operating and material costs, in turn the construction costs, particularly, of tanks and tankers, will be substantially less. This paper introduces a practical cost estimation method together with an example of conceptual planning of an LPG project based on experimental data and experience.