1
Economic analysis of a methyl tert-buthyl ether project in Thailand | |
Author | Wanna Pongpeomperk |
Call Number | AIT Thesis no. IE-91-24 |
Subject(s) | Methyl Tert-Buthyl Ether Project |
Note | A thesis study submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Engineering and Technology |
Publisher | Asian Institute of Technology |
Abstract | In response to environmental problems caused by lead compounds, significant changes in the composition of gasoline were instituted throughout the world. This resulted in the increased use of MTBE to replace lead in order to maintain octane levels. This study presents an economic analysis of an MTBE project in Thailand by selecting a MTBE plant with a capacity of 100,000 ton per year as a case study. Net present value and internal rate of return technique have been utilized for this analysis. The economic performance of the MTBE plant is evaluated for 15 years between 1992-2009. The results of financial analysis of the project show that financial IRR is at 25.57% and NPV at 2,911 million Baht assuming 5% uniform inflation rate. The results of sensitivity analysis indicate that the product selling price and the feedstock price are the most sensitive variables, followed by the variations in fixed capital cost, long-term interest rates, the values of Baht, inflation rates, and maintenance costs in that order. The project viability drops significantly with the reduction in selling price and the increase in feedstock price. Under the worst case scenario, it is assumed that the most sensitive variables namely fixed capital cost, selling prices, and raw material prices, are pessimistic. However, the project is still found to be viable with 17.6% of lRR and 1,058 million Baht of NPV. |
Year | 1991 |
Type | Thesis |
School | School of Engineering and Technology (SET) |
Department | Other Field of Studies (No Department) |
Academic Program/FoS | Industrial Engineering (IE) |
Chairperson(s) | Tang, John C.S. |
Examination Committee(s) | Oudheusden, Dirk L. van ;Nagarur, Nagendra N. |
Scholarship Donor(s) | The Government of Netherland ; |
Degree | Thesis (M.Eng.) - Asian Institute of Technology, 1991 |