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 (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 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, and $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 LCCP reached beneficial operation in June 2019. The ethane cracker reached beneficial operation in August 2019.

Latest Developments
The ETO unit – the fourth of seven units – at the LCCP has achieved beneficial operation.

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 achievement of the ETO unit’s beneficial operation is within the guided timeline of the third quarter of the financial year, Sasol has said.

Meanwhile, Sasol has said that the LCCP will make a smaller contribution to earnings, lowering its guidance for the second time in five months. The stock fell as much as 12%, to the lowest level since November 2008, with shares adown 22% this year, the worst performer in an index of South Africa’s 40 largest companies.

A fire and an explosion at one of the US project’s units recently means the LCCP will add only $50-million to $100-million to earnings before interest, taxes, depreciation and amortisation, Sasol has said in a statement.

Initial findings of damage to the LDPE unit at the LCCP show that the fire left major equipment unaffected, though it remains shut, the company said on January 24. Sasol expects to have a better idea of the duration of the shutdown by the second half of February.

Key Contracts and Suppliers
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.