Document 2NapreoezO58paB8KvX8yYvp5

INTER-OFFICE COMMUNICATION! I XTERMED I AT E S DIVISION i. 0 ; FOR: Mil. LXu laudR I AG c. G. T HO MI'SOX FROM: MR. 0. C. uLL nli: PVC PLANT--COXOCO BASIS S V-..... 1. v F>ATK JULY 26, 1972 C C: J, FAT i I D. R. RECK J. F. KTLCUT.LEX ]'. A, LOGO F . HOURILAX R. M. 1'ATF G. I. ROZAXi) M. WACSiiUL*/ Earlier preliminary cost estimates for a new PVC plant have been refined based on information obtained during the visit with Conoco in Oklahoma City July 20, 1972. A plant of 240 >21 Ib/yr capacity, or double Conoco's plant size, would require a capital investment of about $13 >21 before license fee for a Pasadena location. This cost is based on the same design concepts as used in Conoco's plant but provides for considerably more product storage, warehousing, and packaging facilities. Conversion cost of monomer in such a plant would be about 1.4c/lb. Capital cost would be essentially the same as for a plant using the Shin-Etsu process, but operating costs should be slightly lower because of elimination of refrigerated cooling and colonized water in the Conoco process. ^rscussion Capital costs for a 240 121 lb/yr PVC plant (3 reactors) using Conoco technology are developed in Tables I - III. The costs of major equipment listed in Table I are essentially the same as those reviewed in Piscataway July 14, 1972. These major equipment costs are developed into a factored plant capital cost in Table II for a Pasacena location. The construction factors leading to the $12.9 MM cost are based on open shop labor rates which currently average about $5,75 per hour. Tno estimate includes 15-15,000 cu. ft. silos (or about 10 day's storage.) and a warehouse for aoout two week's storage of 20% of the plant output. Taole III develops an alternate capital cost estimate. In this case the Conoco assessment data showing $3,630 M battery limits cost for a 120 >21 lb/yr plant was scaled up using a 0.95 scale factor. This produced a battery limits direct cost aoout 10% lower than developed from our own itemized equipment estimate. Using the same offsites estimate as in Table 1 gives a total plant cost of about $900 M less than the itemized estimate. -* conversion cost or 1.32q/lb is developed in Taole rV. This cost includes a staff of 13 operators, 4 shift supervisors and a unit supervisor. It also includes double the maintenance manpower shown by Conoco for their 120 >21 lo plant. T^ore V tabulates the main deletions of major equipment from the nreviously assumed design based on Conoco's successful operation without these items of equipment. *-le items which migut still be questionable are holding bins ($260 >1 installed), bacic-up generator ($4j.O M installed), and demineralized water units and tank ($352 >1 installed), keeping tnese items in the plant would therefore increase total cost by about $1 MM. COLORITE 007201 INTER-OFFICE communication ___ ______TVTF.RMRDT ATF.F TVTVT FTOR A rough comparison or the S'nin-btsu process wiLh Conoco's indicates that Lucre is probably little difference in capital requirements. Table VI summarizes the main items of equipment in which the processes differ. The Shin-btsu reactors arc appreciably cheaper on an installed basis, but this advantage is approximately offset by elimination in the Conoco process of chilled water cooling, jacket water pumps, gas holder, distillation, and use of demineralized water. DCL/deh Attachments ^ V"- hi D. C. Lee COLORITE 007202 INTER-OFFICE COMMUNICATION intermediates division TART CONOCO ?VC PROCESS MACHINERY AND EQUIPMENT PASADENA LOCATION 240 MM LO/YR CAPACITY Ba tterv Limits Xi . Reactors (8) 2 . Slurry tanks 3 . Charge pumps 4 . Dump pumps 5 . Centrifuges (4) 6 . Centrifuge feed pumps 7 . Driers (4 rotary) 8 . Product collectors & sifters 9 . Recovery compressors 10,. Intercoolers 11,, Condensers 12 . Condenser chiller 13.. Recovered monomer tanks 14 , Solution tanks i1 Jc . Solution pumps 16 . Defoamer equipment 17 . Misc, pumps 18,, Filter Off!sit cs 1. 'Neighing d conveying 2 * Silos 3. Conveying and packaging 4. TCE equipment 5. Waste heat boilers (present plant) 6. Acid tank 7. Hot water tank Tocal (exclusive of Packaged Equipment) MS 1304 '140 ` 20 10 260 12 320 170 155 10 25 25 20 23 J 5 8 3 2515 65 350 64 12 125 5 38 655 3170 COLORITE 007203 INTER-OFFICE COMMUNICATION intermediates DIVISION Be z zarv Li"*za Machinery 4 equipment (Table I) Piping 9 42% Electrical 9 16% Instrumentation 9 27% Painting & insul. 9 8% Structural 9 8% Concrete A 11% Misc. 9 1% buildings Site Preparation o/Dz_r0cz. Costs 0fLsi za3 Mucninery d Equipment (Table -Install as above 9 113% Warehouse Catalyst bldg. rizc protection 'Assto treetmant Rater soitener Instrument and service air oooj.ing towei" Roads d- railroad VCM pipeline Site development Electrical Piping Other 0/S Direct Costs I) Contingency 9 10% Overtime 9 3%' Total, Direct Costs indirect Costs Eieia indirccts 9 60% labor Engineering 9 10% direct costs a x e 3 A o % m a t e r j. a 1 s Eee c 3;2% job total J O 0 i Otcil license; Total Cuoi r.al tad.ee ti CAPITAL ESTIMATE CONOCO PVC PROCESS PASADENA LOCATION 240 MM I.iS/YR Mtls M$ 2515 4660 Labor MS 175 ' 395 147 171 107 42 147 13 35 38 1270 655 528 200 50 102 15 40 65 93 o5 115 145 75 10 2160 680 7500 45 262 - 103 25 10 15 20 25 45 90 100 740 200 60 2270 Total MS 2690 1130 430 727 215 215 296 27 70 130 5930 700 790 200 50 205 40 50 80 115 90 115 190 165 110 2900 880 60 9770 1360 975 375 440 12920 15S0 14500 COLORITE 007204 INTER-OFFICE COMMUNICATION INTERMEDIATES DIVISion_____ TABLE III SCALE-UP OF CONOCO ASSESSMENT CAPITAL Basis: 1) Pasadena and Oklahoma City construction costs equal 2) Scale-up factors a) Battery limits - 0.95 b) Offsites - 0.65 c) Indirects & Eng- 0.80 Eattcrv Limits Direct Costs indirect Costs Offsites Direct Costs Indirect Costs Base Case 120 MM Lb/Yr M$ 2728 952 3680 1850 640 2490 Contingency Q 10% 620 Plant Cost, before License Fee 6790 240 MM Lb/Yr M$ 5280 1670 6950 2900 1120 4020 1100 12070 360 MM LI M$ 7760 2240 10000 3570 15 50 5120 1510 16630 COLOR!TE 007205 INTER-OFFICE COMMUNICATION INTERMEDIATES DIVISION taulk IV CONVERSION COST CONOCO PVC PLANT PASADENA LOCATION 240 MM L3/YR $14,500 M CAPITAL (EX KMC.) Operating Costs Operations: Salaries & benefits Shipping Non-VCM Raw Materials 4 Supplies Lab Steam 45 M Lb/Kr (2/3 waste heat steam) Cooling water 0 1.5<p/M gal Electricity - assume 260 KWii/ton Rater Maintenance: Mtls Salaries & benefits Supr. 4 Q.H. Depreciation @ 6$;% J. ciXCS ^ Plant O.K. Computer lease VCM loss @2% and 4.5e/lb Conversion Cost M$/Yr 360 150 430 30 65 30 220 10 215 250 50 90 5 220 50 60 215 3260 C / Lb 0.15 0.06 0.18 0.01 0.03 0.01 0.09 0.01 0.09 0. 10 0.02 0.38 0.09 0.02 0.02 0.09 1.36 COLORITE 007206 INTER-OFFICE COMMUNICATION TNTFPUFm WV.fi nTVTRTiV; tabu; v DELETIONS fro:: INITIAL DESIGN CONOCO FVC PROCESS PASADENA LOCATION 240 AN LB/Yk Equipment On1, v co ro 1, Holding bins Dack-up generator Refrigeration units 4. Jacket water pumps 5. D.M. water units 6. Chilled water tank 7. D.'l. water tank 8. Distillation col. & condenser 9. Caustic tank 10. Gas holder 11. Waste treatment-reduction 83 130 220 21 175 39 39 52 18 63 140 To Lai Installed 260 410 325 66 260 122 122 164 56 198 205 2188 COLOR!TE 007207 INTER-OFFICE COMMUNICATION INTER MEDIA'/1'S DIVISION TA3LL VI SH1N-ETSU VS CONOCO CAPITAL COHPARISON (OTHER COSTS ASSUMED IDENTICAL) PASADENA LOCATION oatterv Limits I . Reactors 2. Jacket water pumps 3. Centrifuges 4. Centrifuge pumps 5. Product collectors i sifters 6. Gas holder 7. Distillation coi. 8. Condenser Offsites I * Conveying 4 weighing 2 Caustic tanns 3. Chilled water tank 4 . D.M. water tank 5. Refrigeration 6. D.M. water units Totals 240 MM Lb/Yr Conoco Equip. Total Only Install. M$ M$ 1304 - 260 10 168 - 1742 4095 - 816 31 523 - - - 5470 220 MM Lb/Yr Shin-Etsu Equip. Total Only Install MS M$ 920 21 185 7 118 63 40 12 136b 2890 66 580 ;?1 370 198 1 26 38 4290 64 - 64 1806 200 _ - - 200 5670 45 14 39 39 220 175 532 1898 14 2 44 122 122 325 260 1015 5305 COLORITE 007208