Absolutely! Undersized separator tanks generally result in high velocities of steam and condensate flow through the inlet separator nozzle, through the shell of tank, and through the outlet blow-through steam nozzle.
High velocities do not provide the basis for good separation of the steam and condensate and as a result, the blow-through steam will tend to carryover some condensate. High velocities will also erode the baffles and impingement plates inside the tank much quicker, especially with 2-phase steam and condensate flow potentially causing short-circuiting between the inlet and outlet nozzles. Condensate carryover will accelerate the erosion of downstream piping and thermocompressors and increase the condensate load for the syphons to remove from the dryers. Undersized separator tanks also tend to have poor level control. Separator tanks must be sized based on achieving a low vapor velocity through the tank and adequate liquid retention time.
The issues associated with undersized separator tanks will cause poor operation of the thermocompressor and dryer control equipment. Venting and steam waste is common when condensate separator tanks are undersized.