South Africa headquartered Sasol Limited has taken the final decision to set up an US$ 8.1 billion ethane cracker and derivatives complex at its existing site in Lake Charles, Louisiana.
"At the heart of the project is an ethane cracker that will produce 1.5 million tons of ethylene annually, benefiting from significant economies of scale and the complex also includes six chemical manufacturing plants,” Sasol said.
Approximately 90 percent of the cracker's ethylene output will be converted into a diverse slate of commodity and high-margin specialty chemicals for markets in which Sasol has a strong position, supported by collaborative customer relationships.
Once commissioned, this world-scale petrochemicals complex will roughly triple Sasol’s chemical production capacity in the United States, enabling Sasol to further strengthen its position in a growing global chemicals market.
Sasol has selected Fluor Technip Integrated, a joint venture of two world-class firms, as the primary engineering, procurement, and construction management contractor for this project and its project team is also supported by WorleyParsons, who have significant mega-project experience.
An additional US$800 million will be invested in infrastructure and utility improvements, as well as land acquisition, to establish the Lake Charles location as an integrated, multi-asset site that will enable growth for decades to come.
Sasol is in advanced stages in raising the funds required for construction and will utilise a variety of international US dollar-based sources. Site preparation is underway, and the company expects that the facility will achieve beneficial operation in 2018.
"Sasol's decision to move forward with this project is a defining moment in our company's history, and an important milestone in the execution of our growth strategy," said David Constable, President and Chief Executive Officer, Sasol Limited.
"In spite of a largely volatile macroeconomic outlook, we are confident that we will deliver this project successfully, by drawing on our experience of executing world-scale fuel and chemical facilities, and enlisting the best employees and industry partners," he added.
"The economic benefits of this project will extend to all of our shareholders, 67 percent of whom are located in South Africa, and will also enable us to pursue further growth opportunities in Southern Africa," David Constable informed.
Sasol is an international integrated energy and chemical company that leverages the talent and expertise of its more than 33,000 people working in 37 countries and develops and commercialises technologies, and build and operate world-scale facilities to produce a range of product streams. (AR)
