Document VKK1VoB10gVErR5KGrDBrv2e8

iO- DEPARTMENTAL. CORRESPOu.... IKCE u DateFebruary 22, 1966 Susject Prospect No. 902: Ethyl Benzene-Ortho-Xylene Fractionation - Evaluation Memorandum ToFile________________________________________ ___________ __ Dej>t: E. W. Long---------------------------------------- _-------------- Da-T------------------------------------------------------------------------- The Sulfolane aromatics extraction unit will produce 1000 - 1100 BPCD of a Cg aromatics stream consisting of ethyl-benzene, orthoxylene, metaxylene, and paraxylene. The Cg aromatics will be sold as such under contract until Jan. 1, 1967. This prospect proposes installation of fractionating equipment and auxiliaries to separate the Cs aromatics into a 997. pure ethylbenzene stream, orthoxylene, and a meta-paraxylene mix. The unit would consist of two fractionating columns, gas fired reboilers and air cooled condensers. Also, it is proposed that the unit be capable of charging 1630 BPCd to handle outside streams expected to be available. The tax depreciable investment would be $2.1 million based on contractors estimates. Capitalized interest and overhead increase the investment to $2,289,000 total. The Cg aromatics will be sold until Jan., 1967, for 15.75 - 16.0c/gal.; 16c/gal was used in this evaluation as raw material cost. Negotiations with potential customers indicate the following prices for the products: Ethylbenzene Orthoxylene Meta-paraxylene mix 27c/gal 17c/gal 19$/gal Yields and the results of the evaluation are summarized as follows: CASE I CASE II Raw Materials Coastal Other Total Raw Materials: 1100 BPCD 530 1630 BPCD Products Ethyl Benzene Orthoxylene Me ta-?araxylene s 250 BPCD 375 1005 1630 BPCD Payout after taxes and interest expense: 4.8 years 1_100 BPCD TIoo BPCD 169 BPCD 253 678 1100 BPCD 6.9 years Return on investment: 21.43% 12.677. The payout and return at capacity are acceptable but at the lower rate they are marginal. A unit designed for only the 1100 B/D Coastal feed would require about $1.8 million total investment and payout in 5.4 years. Since *t appears that processing outside feed will be part of any sales arrangements made, it is recommended that the larger unit be approved in principal pending sales negotiations and the necessary design and engineering begun. CED0007226 Prospect No. 902: Ethyl Benzene-Ortho-Xylene Fractionation - Evaluation Memorandum February 22, 1966 Page Two It may be necessary later to change the design somewhat because of the volume and characteristics of the outside feed decided on, but the cost of changing the design should be considerably less than the cost of delaying onstream time. A breakdown of the operating costs estimate is attached. bh CED0007227 ETHYL BESZENE/ORTHOXYLEKE FRACTIONATION Operating Costa - 1630 BPCD Charge $/YEAR Fuel: 95 KM BTU/hr. @ 15?/MM BTU 124,800 Power: 675 KW @ ,64?/KWH Demand Charge @ $1.25/KW/Mo. 37,800 10,100 Water: 20 GPM nil TOTAL UTILITIES: 172,700 Maintenance: Lab & Technical: Other Fixed Costa @1% 42,000 ts 3,700 21,000 TOTAL: $239,400 CED0007228 COASTAL STATES GAS PRODUCING COMPANY AUTHORITY FOR EXPENDITURE APPROVAL OF ORIGINAL ESTIMATE APE NO ^__________________ daTe Feb. 23, 1965 DEPARTMENT and company Coastal States Petrochemical Company------------------------------------------- !------------------------a ? E.name Ethylbenzene - Orthoxylene Fractionation PROPERTY NAME-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------GEOGRAPHIC LOCATION Corpus Chrlstl Refinery ------------------------------------------------------------------------------------------- - DESCRIPTION 4 PURPOSE OF PROSPECT .................... ....... The prospect provides for facilities to separate the Ca aromatics that will be produced in the Sulfolane Unit into ethylbenzene, orthoxylene. and a meta-paraxvlene mix. The three products will sell for an average $8.30/bbl. whereas the Cr aromatic mixture sells for $6.72/bbl PROSPECT EVALUATOR (SIGNATURE) E- W- ---------------------------- --------------------------------------------------------------- HAS ECONOMIC EVALUATION BEEN PERFORMED? J YES & NO IF NOT, EXPLAIN_____________________________ ______ SUMMARY OF EVALUATION: 1 - TOTAL COMPANY COST PER COST ESTIMATE 2 - OTHER COST (DESCRIBE) 3 - PAYOUT 4 - RETURN ON INVESTMENT 5 - indenture cash throw - first year i 2>289.000 6- Q YRS. JJL-67-____ % 19,68 % INVESTMENT ANALYSIS SUMMARY: FINANCIAL OBJECTIVES ACCEPTABLE NOT ACCEPTABLE I--1 REVIEWED BY (SIGNATURE AND DATE)___________________________________________________________________________________ JUSTIFICATION FOR PROSPECT IF FINANCIAL OBJECTIVES ARE "NOT ACCEPTABLE*' APPROVALS REQUIRED SIGNATURES DATE I JOINT OWNER PARTICIPATING? YES a NO Q NOT APPLICABLE (COASTAL STATES 1007. W.l.) Q OPERATOR (IF OTHER THAN COASTAL STATES),....................................................................................................................................................... r-553 (9/65) CED0007229 tal states gas producing CO.U AUTHORITY FOR EXPENDITURE - COST ESTIMATE CAPITAL ADDITION REFINING AFE NUMBER^ COMPANY vamf Coastal States Petrochemical Company-------------------------------------------- NUMBER--.-------- Art vamp Ethylbenzene - Orthoxvlene Fractionation--------------------------PROSPECT NUMBER------- 2GZ. AFE nKPti?nm Fractionation o Sulfolane Ca Aromatics Product__________________ ____ LOCATION NUMBER STATE. Texas PRO.IF.CT PURPOSE . Uoerade Ca Aromatics Production Portion of Company Cost Fiscal Year | Code 61 62 69 ACTIVITY Description Crude Refining Fac. S Petrochemical Fac. Common Plant Fac. ESTIMATED STARTING DATE Immediately _ FSTIMATF.n COMPLETION DATE 1/1/o7 MASTER AFE NUMBER REGULATORY DOCKET ent.tneer Rex Harvill REFINING: Materials - New Materials - Used Installation - Outside Contract - Turnkey Installation - Company Direct Other Company Direct Cost 0101 0102 0103 0104 0105 s, 2,100,000 . STORAGE TANKS: OTHER FACILITIES: Gb.Nc.RAL PROPERTY: TOTAL Materials - New Materials - Used Installation - Outside Contraot Installation - Company Direot Other Company Direot Cost TOTAL Materials - New Materials - Used Installation - Outside Contract Installation - Company Direct Other Company Direct Cost Land and Land Rights TOTAL Materials - New Materials - Used Installation - Outside Contraot Installation Company Direct Other Company Direct Cost 0501 s s 0502 C503 0504 0505 1 1 ' Is 0701 IS 0702 1 0703 0704 0705 | 0705 | S OSOl 5 0602 0803 0804 0805 INDIRECT AND OTHER: TOTAL TOTAL DIRECT COST Other Owner Share Company Cost Before Overhead and Interest Overhead Interest TOTAL COMPANY COST 1 9309 9209 9109 5 s ( i 157,500 31.500 *2.289.000 ) PREPARED BY E. W. Long DATE Feb. 23. 1966 AFE NUMBER F.5,-,5 !9/6S) CED0007230 CED0007231 y a f ccm s.rA .i. s t a t f s cas pp.o n u f.in c compan - or p r o s p e c t mo t _COA$TAI-- ST AT S._GAS EPJ3.0JJC.LNC. .C O fiP A lL Y A .r .C _ J 5 R ..P .R O S .r .'.E C .t_ N D CED0007232 ...T.0ta.A.TJ.yJLJ5UM: .C nASJAL_STJ\T[:.S_.GAS..JLR.Q.DU.CJJNC_CJQV1EAN>C__________________________________________________ _ A EE.. OR-J? R0 SPEC1_N 0. Ik J. Q 3 LU 1/1 UJ O X UJ H- -J < e: >Oh<<9 CO O O' HhfO z U.HUJ 3 h- O X at Z u VUU to < h- UJ I -- o ui CC (Mr-- COfOa''0(0<"lC'C0<O t I O' CO t og 1- I eg ! o <r a . 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