Sasol today announced it would move forward with the construction of an $8.1 billion ethane cracker and derivatives complex in Lake Charles, La. The ethane cracker will produce 1.5 million tons of ethylene per year. Sasol said 90% of the cracker’s ethylene output would be converted into commodity and specialty chemicals for which it has a strong market position. Sasol will also invest $800 million in infrastructure and utility improvements and land acquisition.
“Once commissioned, this world-scale petrochemicals complex will roughly triple our chemical production capacity in the United States, enabling Sasol to further strengthen its position in a growing global chemicals market,” said David Constable, president and CEO of Sasol. “The U.S. Gulf Coast’s robust infrastructure for transporting and storing abundant, low-cost ethane was a key driver in our decision to invest in America.”
Sasol in August obtained the final two permits needed to build the ethane cracker and a gas-to-liquids facility at its existing Lake Charles site. Sasol has begun site preparation for the new ethane cracker, which it said would be operational in 2018.
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