Name of the Project
Lake Charles Chemicals Project (LCCP).

Location
Louisiana, US.

Client
Sasol.

Project Description
The project proposes the development of a world-scale 1.5-million-ton-a-year ethane cracker and derivatives complex near Lake Charles, in the southern US state of Louisiana.

Besides the ethane cracker, the project includes six downstream chemical projects. Two large polymer plants – low-density and linear low-density polyethylene, and an ethylene oxide/ethylene glycol plant – will use about two-thirds of the ethylene produced, while three smaller, higher-value derivative plants will use the balance to produce speciality alcohols, ethoxylates and other products.

The LCCP will consume about 100 000 bbl/d of ethane, sourced from suppliers that feed ethane into Mont Belvieu, Texas. While Sasol expects ethane prices to rise, it remains confident of feedstock availability, having contracted 70% of its supply and buying the balance opportunistically on the spot market.

Once commissioned, the petrochemicals complex will almost triple Sasol’s chemical production capacity in the US.

Potential Job Creation
Not stated.

Value
The cost of the LCCP has escalated by $130-million to $11.13-billion, after the project was severely affected by hurricanes Harvey, Irma and Nate.

Duration
The project schedule has been extended. The ethane cracker portion of the project is expected to achieve beneficial operation in the second half of the 2018 calendar year, with 80% of the total LCCP volumes expected to enter beneficial operation by early 2019. The remaining volumes from the derivative units are expected to achieve beneficial operation by the second half of 2019.

Latest Developments
In its interim financial results for the year ended December 31, 2017, released in February this year, Sasol reported that overall construction on the LCCP was continuing on all fronts, with most engineering and procurement activities nearing completion.

At December 31, 2017, capital expenditure amounted to $8.8-billion, and the overall project completion was 81%.

The total forecasted capital cost for the project remains within the previous market guidance of $11.13-billion and is tracking the approved schedule.

Key Contracts and Suppliers
Fluor Corporation and Technip joint venture (engineering, procurement and construction management contract).

On Budget and on Time?
The project remains on track for start-up of the first units in the second half of 2018.

Contact Details for Project Information
Sasol director of public affairs (US) Russell Johnson, tel +1 281 588 3027 or email media@us.sasol.com.
Sasol (South Africa) head of group media relations, Alex Anderson, tel +27 11 441 3295 or email alex.anderson@sasol.com.