Sasol has approved the investment of $8.1-billion on an ethane cracker and derivatives complex at its existing site in Lake Charles, Louisiana, which would triple the petrochemicals group’s chemical production capacity in the US and enable it to further strengthen its position in a growing global chemicals market.

The ethane cracker would produce 1.5-million tons a year of ethylene, with some 90% converted into a diverse slate of commodity and high-margin speciality chemicals.

An additional $800-million would 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 would enable future growth.

Sasol said it was well advanced in the process of raising the required funds for construction and would use a variety of international dollar-based sources.

Site preparation was, meanwhile, under way and the company expected the facility to achieve beneficial operation in 2018. 

Sasol CEO and president David Constable said the US Gulf Coast’s robust infrastructure for transporting and storing abundant, low-cost ethane was a key driver in its decision to invest in America.” 

“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,” he commented.

Despite a largely volatile macroeconomic outlook, he said the group was confident that it would deliver the project successfully, drawing on its experience of executing large-scale fuel and chemical facilities.

Sasol had selected Fluor Technip Integrated, a joint venture of two firms, as the primary engineering, procurement and construction management contractor for the project, while the project management team would be further supported by engineering and construction group WorleyParsons.