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 polymers 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.
Jobs to be Created
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, Irm 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
While Sasol has described the LCCP as a “game changer”, it has indicated that it no longer intends pursuing wholly owned commodity chemicals megaprojects, but would rather leverage its megacomplexes in Southern Africa and North America in the pursuit of value-based growth prospects.
The strategic review has been coupled to a review of 100 assets for classification as core or noncore.
The review is more than 50% complete, with some assets already being identified for either closure or disposal. Sasol has said, however, that it is premature to disclose which other assets have been identified for sale.
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.