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.

Besides the ethane cracker, the project includes six downstream chemicals projects.

Two large polymer plants – a low-density and linear low-density polyethylene 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 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 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 with Louisiana businesses and nearly $200-million in 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 LCCP reached beneficial operation in June 2019. The ethane cracker reached beneficial operation in August 2019.

Latest Developments
Sasol’s ethane cracker reached beneficial operation on August 27.

The new cracker, the heart of the LCCP, is the third and most significant of the seven LCCP facilities to come on line and provide feedstock to Sasol’s six new derivative units at the Lake Charles multi-asset site.

About 90% of the cracker’s ethylene output will be further processed into commodity and high-margin speciality chemicals for markets in which Sasol has a strong position.

The Lake Charles ethane cracker, which uses Technip Stone & Webster technology, is one of the largest in the world.

The ethylene produced in the facility will be used in six downstream plants on site to produce a range of high-value derivatives, including ethylene oxide, monoethylene glycol, ethoxylates, low-density and linear low-density polyethylene, and Ziegler and Guerbet alcohols.

Sasol’s customers use these products as ingredients in detergents, fragrances, metalworking and lubrication fluids, abrasives, paints and coatings, film, food packaging, personal care products and many more applications and end-markets. The remaining 10% of the ethylene will be sold on the merchant market and supply Sasol’s share for its high-density polyethylene joint venture with INEOS in Texas. The utilities and infrastructure systems that enable the entire project are fully operational. The linear low density-polyethylene and EO/EG units achieved beneficial operation earlier this year. The low-density polyethylene unit is expected to achieve beneficial operation by November 2019, while the Ziegler alcohol, ethoxylates and Guerbet alcohol units are on track to achieve beneficial operation in early 2020.

Currently, the cracker continues to operate stably at a capacity utilisation of about 50%. The current output is used by the LCCP’s downstream units and the remainder is sold to external customers. The company will continue to focus on improving the ethylene quality and ramp up the plant in accordance with its plans.

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

On Budget and on Time?
The project has experienced some delays and the project’s budget has been revised. In 2014, the group said the Louisiana project would cost $8.9-billion to build, but there have been several cost revisions since then. In February 2019, Sasol provided a cost-to-completion range of between $11.6-billion and $11.8-billion. That revision increased the project’s price tag by between $1-billion and $1.3-billion, with the higher figure including a contingency of $300-million. The latest revision, in May 2019, increased the project’s price tag to between $12.6-billion and $12.9-billion.

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.