EPCM was awarded the contract to determine the replacement value of the Regulatory Asset Base (RAB) of four benchmark secondary storage depot sizes and a benchmarked service station. The project was split into two parts; the first was to determine the current RAB for four benchmark secondary storage depots with nameplate capacities of 1, 10, 50, 100 million liters of hydrocarbon products. The second part was to determine the replacement value (RAB) of a benchmark service station.
Secondary Storage Depots
The outcome of the study is to provide a Rands million per million litres replacement value to each of the nameplate capacities of 1, 10, 50 and 100 million litres secondary storage depots and to report the findings in an applicable manner.
Based on the engineering of the four nameplate secondary storage depots detail costs were compiled. Detailed project work breakdown structure was developed including material take off for mechanical, electrical and instrumentation items and bills of quantity for civil and construction items. Tender prices were obtained for the major material items. These included tanks, loading arms, pumps, valves, API separator, piping and fittings. Civil and construction costs were taken from EPCM project cost data base and data from recent tank farm construction projects as well as from leading South African construction contractors.
Benchmarked Service Station
The scope includes a survey of licensed and operational service stations in the country to determine the following for a BSS:
I. The annual average petrol and diesel throughput.
II. The asset base (value) of a service station that would pump the average throughput.
III. The value of intangible assets of a service station which will have the ability to accommodate the required annual petrol and diesel throughput.
IV. Submit a template wherein each of the tangible asset values are indicated in Rand and cents/litre.
Based on the design of the BSS template, costs were compiled. Detailed work breakdown structure was developed including material take off for mechanical, electrical and instrumentation items and bills of quantity for civil and construction items. Prices were obtained for the installation and equipment costing.
Scope of Work:
- Concept designs;
- Detailed designs & 3D modelling;
- BOQ formulations and CAPEX determinations;
- Spreadsheets formulation for capital determinations of various size service stations and storage depots.
Figure 1 – Example of 10ML Secondary Storage Depot
Figure 2 – Typical Layout used for BSS evaluation