Abstract:
Methane from natural gas is the remainder from gas separation plant in which the valuable Hydrocarbon compositions have been separated for other purposes. The Petroleum Authority of Thailand is planning to lay down gas distribution lines to industries in Poochaosamingprai and Bangpee area so that Methane can be used as fuel oil by boilers and furnaces The purpose of this thesis is to study whether approximately 130 plants in that industrial area should feasibly adjust their equipments so that Methane from natural gas could be used as fuel oil. As far as the marketing aspect is concerned, it has been found that the quantity of fuel oil consumed domestically has an upward trend. However, the existing refineries do not produce adequate fuel oil to satisfy the consumption need, unless other forms of energy are also used. As well as demand, the retail price of fuel oil trends to go up in respect of crude oil price which is determined by rapid changes of world economics and politics. From the engineering point of view, the study has indicated that Methane can efficiently be used in substitution of fuel oil. Under the same normal load, its Thermal Efficiency level is not below that of fuel oil, it produces less pollution and its maintenance cost is also lower. The economic study of this project has shown that by sampling 10 plants in proportion to the plant types. If all the adjustment and installation of new equipment were to go ahead, the sum of 45,127,450 Bahts would be needed. This study is based on the assumption that the invested money is all by borrowings and to be returned in 5 years, the interest rate is 17% per annual and the retail price of Methane is 90% of that fuel oil at the same heating value. The project is expected to provide the return in 10 year of operation period as followings : Rate of return on total investment is 51.18% The pay-back period in 15% rate of Return per annual is 2 years and 7 months The break-even point is respect at fuel oil cost is 451,274,500 Bahts As a result, the project appeared to be attractive for investment. Conclusively, this analysis will provide a substantial consideration to the Petroleum Authority of Thailand for laying down new gas distribution lines in the future.