Document 4a4Y7VRzBjJDoaKmGLK91Xjja
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TENNECO CHEMICALS CAPITAL APPROVAL FORM
-*
GENERAL MANAGER: M. R. HAYMON
DIVISION
I POLYMERS
COPY TO:
BUSINESS GROUP ACCOUNTING ENGINEERING Pt|RC HASING TREASURER TENNECO TAX TENNECO INSURANCE
W. Rupp/F. S. Klopp M. C. Robinson D. C. Coldiron R. J. Miller J. J. Dunican
cc: W. Hartmann D. E. Rhoads S. R. Sheeran
PROJECT APPROVAL NOTICE
DATE:
April 3, 1980
TITLE NUMBER
: PROVIDE MORE RELIABLE HIGH PRESSURE NITROGEN SUPPLY ! ^ 97208
LOCATION
: PASADENA
AMOUNT
$80,000
RESPONSIBILITY:
DEPARTMENT_________ _______________ - EMERGENCY APPROVED PROJECT! YES
INDIVIDUAL_____
ZZ7 NO
EMERGENCY APPROVAL OFFICER:
EMERGENCY APPROVAL DATE :
A
TEN 1437
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Tcnnoco CntriicalG
CAPITAL ^2PROPRIATION REQUEST v) SUMMARY
C * ' " 9 7 2`0
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DtviS'ON/
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BUSififcSS GROUP PolVT.crs
LOCATION Paso-hT.a, Texas
LE ^Provide More Sellable High Pressure Nicrnwri Su-nly
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AUTHORIZATION IS REQUESTED TO EXPENO NEW FIXEO CAPITAL OPS 80,000
FOR: ir.S tall ir.c a
spare nitrogen cor.pressor, connecting both corrpressors to the er.erger.cy bus and providing
bottled nitroren for backun
FINANCIAL SUMMARY (THOUSAND DOLLARS)
FIRST YEAR
at Capacity
authorization AMOUNT ITHC.Cand cc. REGUi^T
-J i~~r
# ,,12 Mo'S.19_i 19 8- ..
FIXED ASSETS
80.0
NET SALES - UNITS ( )
-- V/CRKING CAPITAL
- S/UNIT
__
OTHER ASSETS
-DOLLARS
NET 'OPERATING INCOME (before taxes)
CASH FLOW
--
(11.3) (6.3)
-- (11.3)
(6.3)
TOTAL NEW CAPITAL TRANSFERRED assets TOTAL PROJECT CAPITAL
80.0 30.0
I
BREAKEVEN VOLUME
RETIRED ASSETS* N'cr.e
CAD.R. NO.
OTHER THAN RlK
AVERAGE ROI, %.
DCF, %
PAYOUT. YRS
PROFITABILITY
NEW CAPITAL
IhCLUOIhG TRANSFERS
fJA
NA
HA
BUDGET
TIME SCHEDULE
VONTHS ' ;TEH
L E ' V F
final ap-"oval___ el Ah f
START OF EXPENDITURE
" Mot!
COMPLETION OF EXPENDITURES IN SERVICE DATE PROJECT LIFE, Yrt
Mo*1 12 M Of
Yf
strategy
PROJECT TYPE
PRODUCT LINE
PVC
HoT.orolv~.er
RATING
RETURN ON NET ASSETS EMPLOYED:
BEFORE PROJECT'% AFTER PROJECT.
(AT CAPACITY)
POLLUTION
1 jDEFENSIVE/ Iq 1 NON PROFIT
SAFETY/McALTHI
,`CCST
insurance
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replacement ,----- i HH
A REPAIR
ir ! PRC DUCT
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DIRECTOR ENGINEERING
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DIRECTOR PROJECTS MGR.-GENERAL ENGINEERING
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TEN 1438
CAR 97208
PROVIDE MORE RELIABLE MICil PRESSURE NITROGEN SUPPLY
SUMMARY
It is proposed that a capital expenditure of $80,000 be approved to provide for the installation of facilities to assure an adequate supply of high pressure "emergency" nitrogen in the Pasadena PVC plant. The present nitrogen supply is inadequate to assure the safe shutdown of the plant during a major power failure.
DISCUSSION
The emergency nitrogen system provides an instrument nitrogen source to critical pneumatic instruments in the PVC plant, and provides the force for injecting the emergency shortstop into the reactor. The system is also designed to allow the use of nitrogen if required for agitation of a reactor to assure adequate mixing of the emergency shortstop after an agitator failure.
The existing system consists of a pressurized nitrogen surge tank and a compressor which compresses purchased nitrogen to the required pressure. This compressor is not connected to the emergency power supply', therefore, it would be inoperable during a power failure. To provide an adequate nitrogen system would require the installation of a spare nitrogen compressor, connecting both compressors to the emergency power supply, and installing a backup bottled nitrogen system.
A more detailed discussion is included in the attached report, LCE-9-79.
4>cope
The scope of the project consists of the following:
1. Purchase and installation of a second nitrogen compressor.
2. Modification of wiring to permit operation of both nitrogen compressors on the emergency power system (i.e. powered by the emergency generator).
3. Installation of facilities to permit the use of rented nitrogen cylinders.
Estimate
The attached estimate of $80,000 is based upon a budget quotation for the new compressor and standard engineering estimating techniques tor the reminder of the estir.kite.
7/10/79
TEN 1439