Opinion of Construction Cost AGT Tanks and Piping

[guntercb]

Hello,

I am doing a project in Florida where we are replacing two exising 10,000-gallon methanol AGT fuel tanks, fuel pipelines, and pumps. We are working on an opinon of probable construction cost for our client; however, I do not have much good data to use. Does anyone have any cost information on the following:

1. Remove and dispose of an existing 10,000-gallon AGT Methonal Tank
2. Price of buried 1.5-Inch welded steel with 3" fiberglass containment under 3' of cover

Any help would be greatly appreciated.

Thanks,
Chris

 

[GregLamberson]

guntercb

Since you only asked for the 2 items, I assume you have the remainder (pumps, new tank installation, etc.).

Personally, since it is "an opinion of probable construction costs" and not a request for a lump sum bid, I would take the cost of the new tank construction (not material) and double it for demolition & disposal costs.

There are a multitude of related questions, will the foundations be re-used, etc. But at this point it appears the client is asking for an order of magnitude. That's what I would give him. If asked for more details, go out and get some quotes on it.

Normally you would need a little more information on the pipe, is it welded of screwed? Almost in any case, again based on your parameters, I would base it on around $8/ft all inclusive. That is probably on the high side, but at $5+/dia-inch foot all-in it's not obscene.

What it will do is give your client a rough idea of what the costs might be which it sounds like is all he needs to make some decisions.

Greg Lamberson, BS, MBA
Consultant - Upstream Energy
Website:

http://www.oil-gas-consulting.com

 

[GregLamberson]

Just noticed, you did say it was welded, sorry. I'd still shoot them $8/ft installed.

If you want a better idea or breakdown of costs, you can check out some of the John S Page cost manuals (available thru Gulf Publishing). They are great for both coneptual costs as well as detailed cost estimates.

Greg Lamberson, BS, MBA
Consultant - Upstream Energy
Website:

http://www.oil-gas-consulting.com

 

[BigInch]

You're going to have to spread the mob/demobilization cost for the pipeline over its length to get a price. How long is it?

http://virtualpipeline.spaces.msn.com

 

[GregLamberson]

guntercb

I dumped the pipe into a cost model I have for pipeline work (It's geared for larger scopes, but.....) and for 1 mile of your pipe, I get $65K all-in costs. This does not include engineering work, regulatory studies, environmental studies, owner costs, etc, only construction/installation and material costs.

The cost model is designed to get conceptual costs with little information (I don't use it for firm prices, but your client just wants to know the size of the ballpark he's playing in).

Keep in mind, this is pretty high scale and there are many factors that could affect it, i.e. labor market, fuel prices. Also, for example, if it's wet and you have to use sand points, or if there's rock, the cost will go up.

Also, the $65K comes out to $8.22/dia-inch ft, but if the length varies much, that will change. For example, 2 miles would drop it to $7.13/dia-inch ft (fixed costs such as mobe/demobe that BigInch mentions would be spread out over more footage), on the other hand if it drops to .5 mile, you'll jump to $11.87/dia-inch ft for the inverse reasons.

Greg Lamberson, BS, MBA
Consultant - Upstream Energy
Website:

http://www.oil-gas-consulting.com

 

[guntercb]

Greg,

Thanks the information. I like taking the construction cost for the tank and doubling it to get the cost to demo the existing tanks.

We are installing roughly 918 feet of 1" welded steel in 3" fiberglass. I was quoted a price of $130/foot by a construction company to install 1" steel in 3" fiberglass piping. This is much higher than the price of $8/ft you suggested. Any guess why the discrepancy?

Do you have any bid sheets from contrators for projects you could share? I am looking for information to help me be able to do a detailed breakdown of cost for this project.

Thanks,
Chris

 

[GregLamberson]

guntercb

Is it congested? Ground water or rock? Frankly, my guess would be the contractor really doesn't want to mess with it and has shot you a high end number. Installing 1,000' of 1.5" line in 3" fibreglass is not real sexy work. He also may have a hefty mobe to get there??

Obviously if he quoted you a price, that has to be roughly what the market is demanding. And really, $130K to mess with it.........

Too, my cost model is geared for conceptual costs for long distance, large diameter pipelines, I've never really had to gauge the error factor of short, small diamter pipelines, but that is something I will need to look in to.

As far as bid sheets/cost break downs, sure I have some information I could share that would give you an idea of cost breakdowns. Find it on my website.

Greg Lamberson, BS, MBA
Consultant - Upstream Energy
Website:

http://www.oil-gas-consulting.com

 

[BigInch]

Is he going to crawl into the fiberglass casing and do the 1" welding inside there? I'd pay 130/ft to see that, but not for anything else.

http://virtualpipeline.spaces.msn.com

 

[guntercb]

BigInch,

(-:

Chris

 

[BigInch]

Sorry.

http://virtualpipeline.spaces.msn.com