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 (EO/EG) – 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 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 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 between $11.6-billion and $11.8-billion, announced in February 2019, to between $12.6-billion and $12.9-billion in May 2019.

Planned Start/End Date
The new EO/EG production facility at LCCP reached beneficial operation in June 2019.

Latest Developments
The final stages of the ethane cracker startup were initiated in July 2019; however, a technical challenge pertaining to a large heat exchanger was encountered, interrupting start-up for several days.

The startup has now resumed and an update on the achievement of beneficial operation will be provided on or before August 26.

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

On Budget and on Time?
In 2014, the group said the Louisiana project would cost $8.9-billion to build, but there have been several cost revisions since then, the most recent being in February, when Sasol provided a cost-to-completion range of between $11.6-billion and $11.8-billion.

The latest revision increases the project’s price tag by between $1-billion and $1.3-billion, with the higher figure including a contingency of $300-million.

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.