Trade Resources Industry Views Entergy Gulf States Louisiana Signed a Six-Year Commercial and Contractual Agreement

Entergy Gulf States Louisiana Signed a Six-Year Commercial and Contractual Agreement

Entergy Gulf States Louisiana, L.L.C. signed a six-year commercial and contractual agreement with Sasol North America, Inc., a wholly-owned subsidiary of Sasol Limited, to supply up to 200 megawatts of electric power to Sasol's proposed ethane cracker and derivatives project in Westlake, La., beginning in mid-2015.

Sasol announced in December 2012 that it would begin front end engineering and design (FEED) work for a world scale ethane cracker and derivatives facility to be located near the town of Westlake, La.  The estimated cost of the facility is between US $5 – US $7 billion. It is currently envisioned that the final investment decision for the ethane cracker will be taken in 2014 with beneficial operation to be achieved in 2017. The ethane cracker is designed to produce 1.5 million tons per year of ethylene.

Entergy Gulf States Louisiana plans to upgrade its electric transmission system to meet the increased demand the ethylene production facility is anticipated to generate.

"We are excited to have been selected to play an integral role in this significant project," said Phillip May, president and chief executive officer of Entergy Gulf States Louisiana, L.L.C. and Entergy Louisiana, LLC.

"Working with Sasol to create the optimal solution to power the company's new Westlake facility is one of the ways we are proud to be a part of supporting the region – and Louisiana's – economic growth and vitality.

"Over the past several years in particular, Entergy has been working more closely than ever with public and private partners and key multinational companies like Sasol to custom-fit electric power solutions to business and industry needs. This concerted focus is an important part of our commitment to helping attract, retain and expand new business and investment in the state, creating long-term opportunities for companies as well as the communities in which they operate."

Entergy Corporation was once again recognized as one of the top 10 utilities in North America by Site Selection magazine's September 2013 issue for its work to support economic development. In its list of economic development highlights from the previous year, Site Selection credited Entergy's work in helping to identify eight certified sites in partnership with Louisiana Economic Development. New civil engineering services have also made a great impact on the team's level of service and quality of site evaluation.

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Entergy Gulf States Louisiana to Power Sasol's Ethane Cracker and Derivatives Project in Westlake
Topics: Metallurgy