Sasol SSL announces final investment decision on world-scale
ethane cracker and derivatives complex in Louisiana
Today, Sasol announced the final approval of an US$8.1
billion ethane cracker and derivatives complex at its
existing site in Lake Charles, Louisiana.
“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. “Once commissioned, this world-scale petrochemicals
complex will roughly triple our chemical production capacity
in the United States, enabling Sasol to further strengthen
its position in a growing global chemicals market. The U.S.
Gulf Coast's robust infrastructure for transporting and
storing abundant, low-cost ethane was a key driver in our
decision to invest in America.”
At the heart of the project is an ethane cracker that will
produce 1.5 million tons of ethylene annually, benefitting
from significant economies of scale. The complex also
includes six chemical manufacturing plants. 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,
underpinned by collaborative customer relationships.
“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,” said Constable. “The Sasol team and our
contractors have strong track records in project management,
engineering, fabrication and construction of similar large-
scale petrochemical complexes, with deep expertise along the
U.S. Gulf Coast.”
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. Sasol's project management team is also supported by
WorleyParsons, who bring with them 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 well-advanced in raising the funds required for
construction and will utilise a variety of international U.S.
dollar-based sources. Site preparation is underway, and the
company expects that the facility will achieve beneficial
operation in 2018.
“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,” said Constable. “In
addition, this project will deliver significant benefits to
the State of Louisiana and the United States. More
specifically, it will enhance local investment and job
creation in the surrounding communities, while strengthening
downstream manufacturing and increasing exports.”
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in