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ICAF

The integrity of a gas processing facility's central control building is at high risk from external fires. Two options were proposed to reduce this risk: active fire protection (AFP), which requires more installation time and has higher costs but provides greater risk reduction over a longer lifespan; and passive fire protection (PFP), which has lower installation time and costs but provides less risk reduction and a shorter lifespan. The document requests calculation of the incremental cost of averting a fraction (ICAF) for each option and a recommendation for which, if any, option to select.

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Muhammad.Saim
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85 views2 pages

ICAF

The integrity of a gas processing facility's central control building is at high risk from external fires. Two options were proposed to reduce this risk: active fire protection (AFP), which requires more installation time and has higher costs but provides greater risk reduction over a longer lifespan; and passive fire protection (PFP), which has lower installation time and costs but provides less risk reduction and a shorter lifespan. The document requests calculation of the incremental cost of averting a fraction (ICAF) for each option and a recommendation for which, if any, option to select.

Uploaded by

Muhammad.Saim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The integrity of the central control building of an onshore gas processing facility is at high risk of external

fires. Two options have been proposed to reduce the risk:


1. Active Fire Protection (AFP)

 1600 man-hours to install at $20/manhour


 Labour costs = $32,000
 Capital cost = $1 million
 Reduce PLL by 2.5 x 10-2/year
 Design life = 25 years
1. Passive Fire Protection (PFP)

 400 man-hours to install at $15 / manhour


 Labour costs = $6,000
 Capital cost = $250,000
 Reduce PLL by 1.75x10-2/year
 Design life = 5 years

What is the ICAF and proportion factor?


Which option should be selected (if any)?
1.1 Exercise Task 3 - Answers

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