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

Location
Louisiana, US.

Project Owner/s
Sasol.

Project Description
The LCCP comprises a world-scale 1.54-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 chemicals projects.

Two large polymer plants – a low-density and linear low-density polyethylene plant, and an ethylene oxide/ethylene glycol (EO/EG) 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 use 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 feed-stock availability, having contracted 70% of its supply and buying the balance opportunistically on the spot market.

The petrochemicals complex is expected to almost triple Sasol’s chemical production capacity in the US.

Potential Job Creation
In August 2019, Sasol stated that the project had generated more than 800 full-time quality manufacturing jobs – with up to 6 500 people on site during construction, $4-billion spent with Louisiana businesses and nearly $200-million in local and state taxes.

Capital Expenditure
The cost of the LCCP has been revised from between $11.6-billion and $11.8-billion, announced in February 2019, to between $12.6-billion and $12.9-billion, announced in May 2019.

Planned Start/End Date
The new EO/EG production facility at LCCP reached beneficial operation in June 2019. The ethane cracker reached beneficial operation in August 2019.

Latest Developments
Sasol has said that it has resolved the issues with the acetylene removal system of the ethane cracker at the LCCP.

The ethane cracker achieved beneficial operation in August, but had been running only at about 50% to 60% of nameplate capacity, owing to underperformance of the acetylene removal system.

With the acetylene reactor catalyst replaced, ethylene production rates are now about 85% to 90% of nameplate capacity and are increasing, at a quality that meets US Gulf Coast ethylene pipeline specifications, the company has said.

Sasol has also stated that the LCCP low-density polyethylene unit is being commissioned and that it will achieve beneficial operation this month.

The company has further confirmed that the remaining three downstream units under construction to complete the integrated LCCP site – Ziegler Alcohols and Alumina, Alcohol Ethoxylates, and Guerbet Alcohols – remain on cost and schedule as per its previous guidance.

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

On Budget and on Time?
The project has experienced some delays and the project’s budget has been revised. In 2014, the group said the Louisiana project would cost $8.9-billion to build, but there have been several cost revisions since then. In February 2019, Sasol provided a cost-to-completion range of between $11.6-billion and $11.8-billion. That revision increased the project’s price tag by between $1-billion and $1.3-billion, with the higher figure including a contingency of $300-million. The latest revision, in May 2019, increased the project’s price tag to between $12.6-billion and $12.9-billion.

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) group media relations head Alex Anderson, tel +27 11 441 3295 or email alex.anderson@sasol.com.