Sasol takes FID on Louisiana petrochemical complex

Sasol Ltd. has reached a final investment decision (FID) for its proposed integrated ethane cracker and downstream derivatives complex to built adjacent to the company’s existing operations in Westlake, La. (OGJ Online, May 1, 2014).

In addition to a grassroots ethane cracker capable of producing 1.5 million tonnes/year of ethylene, the $8.1 billion complex will include six chemical manufacturing plants, Sasol said.

Another $800 million will be invested in infrastructure and utility improvements, as well as in land acquisition, the company said.

With site preparation now under way, the new complex currently is on schedule to be commissioned in 2018, Sasol said.

Once commissioned, the petrochemicals complex roughly will triple Sasol’s US chemical production capacity to further strengthen the company’s competitive position in a growing global chemicals market, according to David Constable, Sasol’s president and chief executive.

“The US Gulf Coast’s robust infrastructure for transporting and storing abundant, low-cost ethane was a key driver in our decision to invest in America,” said Constable.

About 90% of ethylene output from the new cracker will be converted into a diverse slate of commodity and high-margin specialty chemicals for global markets in which Sasol already holds strong positions, the company said.

Sasol also confirmed it has let a contract to a joint venture of Fluor Corp. and Technip for engineering, procurement, and construction management (EPCM) on the project.

Under the contract, which covers EPCM for the ethane cracker, downstream derivatives units, associated utilities, offsites, and infrastructure work, the Fluor Corp.-Technip venture also will provide start-up, commissioning, and performance testing support to Sasol, Fluor and Technip said in separate releases on Oct. 27.

A value of the EPCM contract was not disclosed.

Sasol previously awarded both Fluor and Technip contracts to provide various front-end engineering and design services for the complex, which when completed will represent the largest single manufacturing investment in Louisiana’s history (OGJ Online, Oct. 16, 2013; July 15, 2013).

In May, Sasol Ltd.-owned Sasol Chemicals (USA) LLC let a contract to Boardwalk Pipeline Partners LP subsidiary Boardwalk Louisiana Midstream LLC to provide long-term ethane and ethylene storage and transportation services to support the proposed integrated Westlake complex (OGJ Online, May 1, 2014).