Lake Charles Chemicals Project, US

26th April 2019 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Lake Charles Chemicals Project, US

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

Location
Louisiana, US.

Project Owner/s
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 (LLDPE), 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.

Capital Expenditure
The cost of the LCCP has been revised from $11.13-billion to a range from $11.6-billion to $11.8-billion.

Planned Start/End Date
Not stated.

Latest Developments
Sasol has reported that the LCCP is 96% complete and that it expects the ethylene oxide and ethylene glycol unit to reach beneficial operation in June.

As at the end of March 2019, capital expenditure on the LCCP amounted to US$11.4-billion.

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

On Budget and on Time?
Too early to state.

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.