Document KR7gq2mz30g72Zg4DZdEgBmwr
Gary Draper - Conoco VCM
Dick Wilkinson
May 22, 1975
Chlorine Unloading Facilities - Capital Budget
Eelative to your telex of May 8, 1975> we recommend you invest to add liquid chlorine unloading capability rather than debottleneck the chlori: pipeline from PPG.
The major reasons for this recommendation are:
(1) From a philosophic standpoint, ve prefer to spread our major raw material purchases amongst multiple suppliers. This obviously reduces the risks of being associated with a single supplier.
Specifically, PPG is programmed to supply approximately 52$ of cur maximum long-term chlorine requirements, yet we are dependent on them to deliver approximately 83$ of the same requirement. Obviously, we lose considerable advantage of having multiple suppliers because of this condition.
(2) By doubling our liquid unloading facilities, we would reduce our dependency, for PPG to deliver, to 59$ of our maximum requirements. This is much closer to the percentage they are programmed to supply us, being a much better balance.
(3) By being highly dependent on PPG to deliver a good percentag of our contract commitments with other suppliers, we place ourselves in a position of breaching our contracts with these suppliers if for some reason we cannot gain PPG's cooperation in delivering such quantities of chlorine through. their pipeline.
(4) The present pipeline maximum rate is 700 tons/day adding to it our present liquid unloading rate, we have the ability to bring in 850 tons/day. This daily maximum is 115$ of our maximum required rate, indicating expansion of unloading facilities based on needs, other than flexibility, is not Justified.
Gary Draper May 22, 1975 Page 2
X have attached a chart indicating our preliminary long-term chlorine supply pattern. Should you have any questions on this, please let me Know. In addition to recommending a second liquid chlorine station, we feel it is most prudent to place a high priority on the project in order to allow us the necessary flexibility to properly supply the VCM plant th ir chlorine requirements. Very truly yours. K. P. Wilkinson
Jh/
JCC; Bill Carter, Saddle Brook Jim DeBernardl, lake Charles Bob McPherson, Saddle Brook
CCR 0000 3 819 5
rmtrmm flOVKX tUM IAO AM TDC
qmww IBHBMMB
vm - 7%5 Ml Ibx
x 322
X9C - 30 Ml 11*
X 375
ma to mcx - 50 t/d * 365
5/22/T5
Chlorlno {K35S}
2*2 10 18
MgTMo
8uppllr
m DitBOOl
TOTAL
1973
99
as
-12200
ML 1978 1979
(f of Ifnull--nf)
52 92 A 6*
36 36 36 36
12 12
100 100 100 100
I960
100 *
100
IfO TUaxonfl blatr
TOTAL
ifco 73
J-
1*0 100
JSL
1ko
100
w2Swv
ISO 100
ido
1m00
1Sm0
a*9 270 270 280 260 j0
MAXDOi SOfftr
(K-ftons)
mo
SkImt
TOTAL
155 195 155 195 195 199
75
J9L
100
JO-
103 30
12*5
12m5
260 265 310 320 320 199
v f CCR 000038196
v
CONOCO VCM TO: R. WILKINSON - SADDLE BROOK FROM: G. G. DRAPER - VCM PLANT - WESTLAKE CC: BILL CARTER - SADDLE BROOK
J. H. MCCULLEY - VCM PLANT J. A. DEBERNARDI - VCM PLANT
(
WE NEED YOUR INPUT ON 1976 CHLORINE SUPPLY PICTURE FOR PURPOSESOF
PREPARING THE 1976 CAPITAL BUDGET. AS YOU KNOW, THE ADDITIONAL
LIQUID CHLORINE UNLOADING STATION ORIGINALLY SCHEDULED FOR 1975
HAS BEEN TENTATIVELY DELAYED UNTIL 1976. OUR QUESTION IS DO WE
WANT TO LOOK AT DEBOTTLENECKING THE CL2 PIPELINE FROM PPG SO AS
TO TAKE MORE GASEOUS CHLORINE OR GO AHEAD WITH THE ADDITION LIQUID
UNLOADING SPOT. THIS WILL BE DEPENDENT ON WHO OUR LONG TERM CHLORINE
SUPPLIERS WILL BE.
WE MAY WANT TO DO BOTH PROJECTS BUT WE NEED
FROM YOU THE JUSTIFICATIONS OR ECONOMIC INCENTIVES FOR THESE PRO
JECTS TO BE INCLUDED IN THE 1976 CAPITAL BUDGET.
G. G. DRAPER CONOCO VCM PLANT WESTLAKE, LA. 5/8/75 11:00 A.M.
CCR 000038197