1 Preface
2 Scope and Methodology
2.1 Study Objectives
2.2 Stakeholders
2.3 Research Methodology
3 Executive Summary
3.1 Market Scenario
3.2 Raw Material Requirements
3.3 Income Projections
3.4 Expenditure Projections
3.5 Profit Analysis
4 Global Butane Market
4.1 Market Overview
4.2 Historical and Current Market Performance
4.3 Impact of COVID-19
4.4 Market Breakup by Segment
4.5 Market Breakup by Region
4.6 Price Trends
4.6.1 Raw Material Price Trends
4.6.2 Butane Price Trends
4.6.3 Product Margins
4.7 Market Forecast
4.8 Competitive Landscape
4.8.1 Market Structure
4.8.2 Key Players
4.8.3 Profiles of Key Players
5 Detailed Process Flow
5.1 Product Overview
5.2 Various Types of Unit Operations Involved
5.3 Quality Assurance Criteria
5.4 Technical Tests
5.5 Mass Balance and Raw Material Requirements
6 Project Details, Requirements and Costs Involved
6.1 Land, Location and Site Development
6.1.1 Overview of Land Location
6.1.2 Selection Criteria and Significance
6.1.3 Location Analysis
6.1.4 Project Planning and Phasing of Development
6.1.5 Environmental Impact
6.1.6 Land Requirement and Costs
6.2 Plant Layout
6.2.1 Overview
6.2.2 Importance and Essentials
6.2.3 Layout
6.2.4 Factors Influencing Layout
6.3 Plant Machinery
6.3.1 Machinery Requirements
6.3.2 Machinery Costs
6.3.3 Machinery Suppliers (Provided on Request)
6.3.4 Machinery Pictures
6.4 Raw Materials
6.4.1 Raw Material Requirements
6.4.2 Raw Material Details and Procurement
6.4.3 Raw Material Costs
6.4.4 Raw Material Suppliers (Provided on Request)
6.4.5 Raw Material and Final Product Pictures
6.5 Packaging
6.5.1 Packaging Overview
6.5.2 Packaging Requirements
6.5.3 Packaging Material Details and Procurement
6.5.4 Packaging Costs
6.5.5 Packaging Material Suppliers (Provided on Request)
6.6 Transportation
6.6.1 Transportation Overview
6.6.2 Transportation Requirements
6.6.3 Transportation Costs
6.7 Utilities
6.7.1 Energy Requirements and Costs
6.7.2 Water Requirements and Costs
6.7.3 Costs Related to Other Utilities
6.8 Human Resource Requirements and Wages
6.8.1 Total Human Resource Requirement
6.8.2 Salary Costs
6.8.3 Overview of Employee Policies
7 Loans and Financial Assistance
8 Project Economics
8.1 Capital Cost of the Project
8.2 Techno-Economic Parameters
8.3 Income Projections
8.4 Expenditure Projections
8.5 Product Pricing and Margins
8.6 Taxation
8.7 Depreciation
8.8 Financial Analysis
8.8.1 Liquidity Analysis
8.8.2 Profitability Analysis
8.8.2.1 Payback Period
8.8.2.2 Net Present Value
8.8.2.3 Internal Rate of Return
8.8.2.4 Profit and Loss Account
8.8.3 Uncertainty Analysis
8.8.4 Sensitivity Analysis
8.8.5 Economic Analysis
9 Regulatory Procedures and Approval
10 Certification Requirement
11 Key Success and Risk Factors
12 Strategic Recommendations
13 Case Study of a Successful Venture
Capital requirements generally include land acquisition, construction, equipment procurement, installation, pre-operative expenses, and initial working capital. The total amount varies with capacity, technology, and location.
To start a butane production business, one needs to conduct a market feasibility study, secure required licenses, arrange funding, select suitable land, procure equipment, recruit skilled labor, and establish a supply chain and distribution network.
Butane production requires raw materials such as natural gas, which contains various hydrocarbons. Crude oil/naphtha can also serve as a feedstock. Additional inputs include water, energy (electricity and fuel), and specific catalysts for isomerization and refining processes.
The butane factory typically requires hydrocarbon processing units such as fractionation towers, cryogenic distillation systems, compression and refrigeration units, storage tanks, piping systems, safety and control systems, and auxiliary utilities like cooling systems and flare stacks.
The main steps generally include:
Extraction of raw materials
Fractional distillation to separate butane from propane, ethane, and other hydrocarbons
Compression, cooling, and liquefaction of butane
Purification and quality control testing
Storage in pressurized tanks or cylinders
Distribution and supply chain management
Usually, the timeline can range from 18 to 24 months to start a butane production plant, depending on factors like design, permitting, procurement, installation, and commissioning. Timeframes can vary significantly based on plant size, location, and regulatory requirements.
Challenges may include high capital requirements, securing regulatory approvals, ensuring raw material supply, competition, skilled manpower availability, and managing operational risks.
Typical requirements include business registration, environmental clearances, factory licenses, fire safety certifications, and industry-specific permits. Local/state/national regulations may apply depending on the location.
The top butane producers are:
British Petroleum
Chevron Corporation
China National Petroleum Corporation (CNPC)
Valero Energy Corporation
Conocco Phillips Inc.
Devron Energy Corporation
Profitability depends on several factors including market demand, production efficiency, pricing strategy, raw material cost management, and operational scale. Profit margins usually improve with capacity expansion and increased capacity utilization rates.
Cost components typically include:
Land and Infrastructure
Machinery and Equipment
Building and Civil Construction
Utilities and Installation
Working Capital
Break even in a butane production business typically range from 5 to 9 years, depending on plant capacity, raw material sourcing, operational efficiency, market price of butane, and demand from market.
Governments may offer incentives such as capital subsidies, tax exemptions, reduced utility tariffs, export benefits, or interest subsidies to promote manufacturing under various national or regional industrial policies.
Financing can be arranged through term loans, government-backed schemes, private equity, venture capital, equipment leasing, or strategic partnerships. Financial viability assessments help identify optimal funding routes.