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XV.a Petroleum refineries Costs

Figures based on Markal10 documentation, Energy process and infrastructure, page 14


Figures for refineries derived from Markal documentation. Low cost figures taken from 'standard refinery' (Capex £m(2000)1.686/PJ and Opex £m(2000)0.1594/PJ) high cost figures taken from 'high limit refinery' (Capex £m(2000)3.519/PJ and Opex £m(2000)0.1883/PJ). The "default" point is the 35th centile between these low and the high costs.


Based on the fact that the UK currently has 9 refineries producing approximately 90 million tonnes of petroleum per year, We assume a refinery size capable of dealing with 10 Mtoe/y. Working through the conversions, this appears to work out to 418.7 PJ/a, or ~13.3GW. We have simplified this to 13GW.


Assume a refinery has a 30 year life. Treat this as meaning (1/30) of refineries need to be replaced each year.

Issues and questions for stakeholders

  • OPEX costs may be a touch high. Other sources on the net quote figures for refining cost of c. $0.30 - 0.60 per gallon ( Markal is slightly above that range.
  • Is it reasonable to assume refineries have an economic life of 30 years?

General Comments

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