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.

The project also includes six downstream chemicals projects.

Two large polymer plants – a low-density and linear low-density polyethylene (LDPE) 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 (ETO) and other products.

The ETO has a nameplate capacity of 100 000 t/y and completes the ethylene oxide value chain, which forms part of the performance chemicals product range.

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 on Louisiana businesses and nearly $200-million on 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 the LCCP reached beneficial operation in June 2019. The ethane cracker reached beneficial operation in August 2019.

The ETO unit – the fourth of seven units – at the LCCP achieved beneficial operation in January 2020.

Latest Developments
Sasol has completed damage assessments of its Lake Charles Chemical Complex’s 14 manufacturing facilities, associated utilities and infrastructure following the landfall of Hurricane Laura on August 27.

While there was moderate wind damage to cooling towers and some insulation and building damage, Sasol said in a statement on September 21 that there was no apparent damage to major process equipment, utilities or infrastructure.

However, this will be confirmed only once electrical power is restored and all systems are tested.

External electrical power service Entergy expects full load service and industrial-level reliability power to be available to Sasol and other industrial customers in the area by early-to-mid October.

The removal of debris, repair work and startup planning are continuing on site and regular employee shifts have resumed, with contractors working onsite to expedite readiness for startup.

The homes of hundreds of the complex’s employees suffered significant damage, as a result of the hurricane, and remain in temporary housing while utility restoration and repair work are in progress.

Sasol is assisting its employees with home preservation, essential supplies and financial aid.

The company is also supporting the local authorities, utility partners and citizen groups in the community to assist with infrastructure recovery efforts.

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

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.