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’s LDPE unit reached beneficial operation on November 15. It is the seventh and final LCCP unit to come on line.

The LCCP is now 100% complete, with total capital expenditure forecast to be within the previously communicated guidance of $12.8-billion.

Sasol’s LDPE unit uses ExxonMobil technology and has a nameplate capacity of 420 000 t/y.

The LDPE unit is one of the three LCCP plants that will form part of the Sasol/LyondellBasell Louisiana Integrated Polyethylene joint venture (JV).

In October, LyondellBasell and Sasol announced that they had entered into a definitive agreement to form a 50/50 JV, through which LyondellBasell would acquire 50% of Sasol’s 1.5-million-ton ethane cracker, 900 000 t low and linear-low density polyethylene plants and associated infrastructure for a total consideration of $2-billion.

The agreement includes customary rights for each partner regarding the potential future sale of its ownership interest. The JV would operate under the name Louisiana Integrated PolyEthylene JV LLC. 

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.