#  > Petroleum Industry Zone >  > Petrochemical >  >  >  Chemical engineering plant cost index

## Mohamed

*Please if any one can share*Chemical Engineering Plant Cost Index or cost estimation standard of any world well re-known company
example of i want 
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See More: Chemical engineering plant cost index

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## Mohamed

Cost Indices Cost data are given as of a specific date and can be
converted to more recent costs through the use of cost indices. In general,
the indices are based upon constant dollars in a base year and
actual dollars in a specific year. In this way, with the proper application
of the index, the effect of inflation (or deflation) and price increases by
multiplying the historical cost by the ratio of the present cost index
divided by the index applicable in the historical year. Labor, material,
construction costs, energy prices, and product prices all change at different
rates. Most cost indices represent national averages, and local
averages may vary considerably.

The chemical engineering (CE) index and the Marshall and Swift
index are found in each issue of the magazine Chemical Engineering.
The Oil and Gas Journal reports the Nelson-Farrar Refinery indices
in the first issue of each quarter. The base years selected for each
index are generally periods of low inflation so that the index is stable.
The derivation of base values is referred to in the respective publications.

*Use of Cost Index :* A centrifuge cost $95,000 in 1999.
What is the cost of the same centrifuge in third quarter of 2004? Use the CE
index.
Solution:
CE index in 1999 = 390.6
CE index in 3d quarter 2004 = 457.4
Cost in 2004 = cost in 1999 (CE index in 3d quarter 2004/ CE
index in 1999)
= $95,000 (457.4/390.6)=$111,200

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## Mohamed

*Cost estimating for chemical engineering plant design
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<![CDATA[[Only Registered And Activated Users Can See Links]*  *[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]* *or** [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]* *Chapter 9.  Includes capital costs for several plants, equations for some equipment, etc.*
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<![CDATA[[Only Registered And Activated Users Can See Links]* *(search plant costs, chemical prices, Nelson-Farrar refinery construction index, refinery operating costs)*
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<![CDATA[[Only Registered And Activated Users Can See Links]*
 *Handbook of Petrochemicals Production Processes, Robert A. Meyers, editor, McGraw-Hill (2005), 665.538 H236.  Requirements for capital investment, raw materials and utilities for many common petrochemicals.*

*Chemicals, raw materials and products**: * *CAUTION:  Prices for laboratory quantities are much higher than for the commercial quantities that you would use for plant design economic calculations. * *Don't use the costs of raw materials and products given in the text.  If you search the internet, use price rather than cost. * 

*Wilson Web:* *[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]**;       (Search price OR cost AND chemicals name).  Includes the following three:**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]** (Search to find articles about      particular chemicals, such as manufacturers, production rates, prices)**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]** (Click on one issue, and then      Find to search for news about particular chemicals from many sources).* 

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<![CDATA[[Only Registered And Activated Users Can See Links]     * *(formerly      Chemical Market Reporter); [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]; [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]      (~1-year old);** [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]**;** [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]** (Click on one issue, and then      Find to search for news about particular chemicals from many sources.)**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] (not free)**Magazine:     * *TP1.c37. * 

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<![CDATA[[Only Registered And Activated Users Can See Links]**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links].  See Facts and Figures for the Chemical      Industry, usually in June or July issue. Production rates of common      chemicals versus time. * *Magazine:* *TP1 .C35**Noble metals** (silver, platinum, rhodium,      iridium) as used in small percentages in catalysts: use google or similar      search engine to find price on line for quantity needed.**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] U.S. Government statistics for price movement (but not      actual prices):* *The* *Producer Price Index (PPI)* *program measures the average change      over time in the selling prices received by domestic producers for their      output.**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]**Search chemical name price at [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] (unfortunately      with annoying popups that may not be prevented)**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] Laboratory chemical suppliers often provide prices.  Suitable for rough estimation of      catalyst costs.  Also google chemical      suppliers.*

*Utilities costs*
*Lower costs than those found below may be negotiated with local suppliers when large quantities are to be used.  To obtain the costs per GJ required by  [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links], it is necessary to use the [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] (HHV), which is also known as Energy content, Btu content, Heating value, and Calorific Value.  Basically, it is the heat of combustion with liquid water as the product.  For [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] the HHV depends on composition, and is approximately 1030 Btu/ft3 (at 30 Torr and 60oF).  Fuel oil #2 is about 140,000 Btu/gal and bituminous coal is ~30 MJ/kg.  See [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]. * 

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<![CDATA[[Only Registered And Activated Users Can See Links]**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]* ; *[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]      (heating values are per pound)**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]      (Same as #2 distillate.)**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] (best site for large industrial usage)**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] for consumers**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]**Credits for steam or      electricity** produced should be deducted from the Cost of Manufacturing      and not included in sales of product(s).**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]* *[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] for natural gas, gasoline, fuel oils, wood & solid      wastes, coal and nuclear.  Shows      recent inflation rates.**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] giving net heating value for natural gas, propane,      wood, fuel oil, coal, switchgrass, shelled corn and electricity.*

*Waste treatment costs*

*[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]** of treating waste water and gas.**Waste gas**: Take a credit for a      combustible (fuel) waste gas that is at a concentration above the [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] as the cost of an equivalent amount of natural gas      based on its lower heating value (LHV).       ([link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links])   The same can be done      if the combustible components are present below the lower flammability      limit, but sufficient oxygen is present for catalytic combustion to      recover the LHV.  HYSYS gives the      LHV for a stream under the Properties tab.       If the gas is below the lower flammability limit and consists of      components that can be burned to CO2 and H2O, assume      that these components are eliminated in a flame at* *a      cost of $0.005/kg.  Any products not permitted to be      exhausted (such as SO2 in many places) must be removed before      the gas is released.  Charge $0.20      per kg of materials that must be removed.       Assume these are 2001 prices; update the burning cost using the      price of natural gas and the waste treatment cost by the price of      electricity.**Waste water**: * *Charge $0.25 per kg of components that must be      removed before discharge of the water.       This cost is for 2001, so update using the cost of electricity.*

*Wages and benefits*

*Bureau of Labor      Statistics: [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]; [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]      (Chemical equipment operators and tenders are category 51-9011 in these      Excel tables, which give hourly and annual wages, and do not include* *[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links], i.e. fringe benefits)**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]**:* *Magazine:**TA1 .E6**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]**:**TN860 .O4**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]      Click on Benefits to see total pay package.  Data probably from the U.S. Bureau of      Labor Statistics (see above).*

*Equipment sizing:**Before the cost of equipment can be estimated its size must be determined.  Similarly, the utilities requirements must be calculated.  Note that HYSYS/UniSim uses inappropriate default values when the units are first entered, e.g. tower diameter and heat exchanger area.  Do not use these default values for cost estimation.*

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<![CDATA[[Only Registered And Activated Users Can See Links] * *Warning:  The part of HYSYS/UniSim installed at      Clarkson University does not calculate heat transfer coefficients      correctly.  It only calculates q/**D**Tavg and      gives this as UA (i.e., it sets F=1) .       The shell area sometimes shown under the Sizing tab is calculated      from the default dimensions of the heat exchanger, and the U given by      HYSYS/UniSim is calculated by dividing UA by this meaningless A.  (Make certain you know how HYSYS/UniSim      calculates UA.) * *[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] * *For heat exchangers that condense      steam or boil water fed at saturation, the temperature of the water-steam      is fixed by the pressure and would be constant if its pressure drop in the      heat exchanger were 0.  The flow rate      of the water-steam is calculated by dividing the Q by the latent heat of      evaporation at that pressure.  If      the boiler feed water (bfw) is below saturation, calculation of the heat      exchanger should be broken into two parts -- one to heat the bfw up to the      saturation temperature and a second to evaporate all of it.  Similarly, if superheated steam is fed,      for calculation purposes break the heat exchanger into one that cools the      steam to saturation and a second that condenses it to saturated water. * *Fired heaters:**  Everything you need to cost fired      heaters is in most design texts, CPC texts, and Perrys.  The cost depends on the duty and the      process stream heated.  The utility      (fuel) cost is determined by dividing the duty by the lower heating value      of the fuel and the efficiency.* *[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]**When a reactor is either      heated or cooled, cost it as the sum of the cost of a heat exchanger plus      that of a vessel.  For a plug flow      reactor, you calculate the area from the tube diameter, length and      numbers.  For a fluidized bed      reactor use the Q and Ts to calculate the area as for other heat      exchangers.**Do not forget to have spare      pumps, as they tend to require maintenance more often than other      units.**Make certain to select the type      of compressor required for your conditions, e.g. do not use a      blower or fan unless the pressure increase is very small.  Spare compressors are not advised.*

*Equipment and capital investment*

*Chapter      9 in* *[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]**Chapter 20 in* *[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]* *(pre 1990)(copied into Appendix C      of**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]**)**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]** (many graphs of cost versus size      as of January 1, 1996)**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] courtesy of Peters, Timmerhaus and West      (2003)**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]      with useful references, from Matche**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]**All costs should be for the present      time, or estimated for the proposed construction time.**       Use the Chemical Engineering Plant Cost Index (CE index, or CEPCI)      or another cost index to update equipment costs:** last page of      each issue of Chemical Engineering:TP1 .C3.   For recent      data on line,* *[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]* *(get      ID & PW from your instructor)**.       Alternatives are the* *[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]** (AD login,      Economics, Current Costs; old issues TA1.e6**), the Marshall      & Swift Equipment Cost Index (at the Chemical Engineering link above),      and the Nelson-Farrar Refinery Cost Index (search Nelson-Farrar or      Economics at the* *[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]).**  Chemical Engineering magazine and the      Oil & Gas Journal also include cost indices for individual types of      equipment.**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] of CE,      Nelson-Farrar refinery cost and Marshall & Swift indices from 1970      through 2006.*
 *Richardson Process Plant Construction Cost Estimating Standards: The Richardson Rapid System, Cost Data On Line, Inc. (CD & [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links])(2009). Excellent source of cost estimating methods.  1999 edition in the Clarkson Library at Ref 692.5 R522p*

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* Use pie charts to show graphically      what the major cost items are to help you decide where to work on      improving the economics of the plant.       It is recommended to have one pie chart for equipment and another      for manufacturing costs.  Rather      than include the entire raw material cost as a manufacturing expense,      include only the portion that is not converted to sellable product.  If you are having difficulty showing a      profit, it is probably because you are converting an insufficient fraction      of the raw material to sellable product because of poor selectivity in      your reactor and/or because of poor separations.  Take a particular look at compressors,      as they are expensive to purchase and to operate.  Could a pump be used instead, e.g. by      first condensing the stream?  Should      two compressors be used with a heat exchanger in between?**Optimization**:       Before adjusting the operating parameters of individual units to      cut costs, first consider rearranging, adding or subtracting units in your      pfd.  Consider using more than one reactor      in series and more than one heat exchanger in series.  For example, if you want to cool a      stream to below 0oC, you can cool it part way by boiling water      in one exchanger, some more with cooling water in a second exchanger, and      finally with refrigerant in a third.       * *[link Point to another website Only the registered members can access]
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*Calculation of NPV, DCFRR and payback period.*

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<![CDATA[[Only Registered And Activated Users Can See Links]      spreadsheet & plot for cash flow profitability analysis.  Simple example of use of Excels goal      seek to calculate interest rate from periodic [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links].**Make certain you do your MACRS      depreciation, cash flow, and discounted cash flow calculations      correctly.  Note that a 5-year MACRS      takes place over a 6-year period, because the first and last years are      considered half years.  At the end      of 6 years of production, the book value should be 0.**[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] ;  [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] (from [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links])**Do not show depreciation as a      cost or expense, except for calculation of income tax.* *[link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links] (for corporate taxable incomes over $**18,333,333)  If a state is not shown, that state does      not tax corporate income, in an effort to attract industry.**Do not forget to estimate      reasonable values for land and working capital, and indicate how you      arrived at these numbers.  Remember      to recover these costs in the last year of operation. * *It is a serious mistake to      calculate the sum of the discounted cash flows by dividing the sum of the      cash flows by (1+i)n.**Instructions on use of [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links]s Excel program [link Point to another website Only the registered members can access]
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<![CDATA[[Only Registered And Activated Users Can See Links].*

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## Mohamed

**[link Point to another website Only the registered members can access]
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## josefreitas

Very useful for Cost Estimation. Thanks

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## swei90

Dear Mohamed, 
Currently i am doing final year project.I need the M& S cost index2012... 
Can you kindly send me the chemical engineering plant cost index for 2012 d?
Please...i really need it...
Thanks in advance

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## josefreitas

please share. thanks

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## josefreitas

here a link h-t-t-p://www.4shared.com/office/sw0y6lo0/Perrys_Chemical_Engineers_Hand.html
and 

h-t-t-p://www.4shared.com/office/Xa_nxPcv/plant_design_and_economics_for.html

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## os12

Dear josefreitas,
Thanks a lot!

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