Sasol commences the front-end engineering and design (FEED) phase for an
integrated gas-to-liquids and ethane cracker complex
LAKE CHARLES, La., Dec. 3, 2012
LAKE CHARLES, La., Dec. 3,2012 /PRNewswire-USNewswire/ --South African-based
energy and chemicals company, Sasol, today announced it will proceed with
front-end engineering and design (FEED) phase for an integrated, 96000bbl/d
gas-to-liquids (GTL) facility and a world-scale ethane cracker with downstream
derivatives, at its Lake Charles site in southwest Louisiana.
At a media conference today with Louisiana Governor, Bobby Jindal, Sasol's
chief executive officer, David Constable, said there is significant
opportunity to beneficiate the abundant gas reserves in the United States by
leveraging Sasol's GTL experience and technology. Sasol's commercially proven
GTL process diversifies the use of natural gas through the production of
premium quality liquid fuels and chemicals.
"Sasol is proud to be driving forward with the next phase of the strategic
mega-projects that we have announced today. Through our innovative energy and
chemicals technologies, we will provide the United States with world-class,
cleaner-burning fuel, contribute to the country's energy security, boost
downstream manufacturing capacity, and diversify the utilization of domestic
gas resources," Constable said.
"Sasol envisions a game-changing partnership with the State that could yield
significant benefits not only for our company but for the community and for
the country. By incorporating GTL technology into the USA's energy mix, states
such as Louisiana will be able to advance the country's energy independence,
through a diversification of supply. We greatly appreciate the support we have
received from the State of Louisiana and Governor Jindal, along with the
people of Calcasieu Parish, in reaching these significant project milestones.
We look forward to furthering our interests in the region, and continuing our
engagement with all our stakeholders."
Governor Jindal said, "Today is a great day for Westlake, Calcasieu Parish and
our entire state. Today's announcement is not only one of the most exciting
announcements in the history of Southwest Louisiana, but one of the most
significant economic development wins our state – and our nation – has ever
recorded. Sasol is one of many energy companies that is expanding in Louisiana
because of our world class energy infrastructure, strong business climate, and
"Never before in our nation's history has there been a greater call for energy
independence, but that independence will only result from a meaningful
application of innovative and practical solutions for new sources of energy.
This project is a giant step forward to help our country become more energy
independent and less reliant on foreign sources of energy.
"This project will be the largest single manufacturing investment in the
history of Louisiana and it also represents one of the largest foreign direct
investment manufacturing projects in the history of the entire United States.
Despite a national economic downturn, this historic economic development win
is happening in Louisiana because we have been laser focused on job creation
by creating an environment where businesses want to invest and create jobs for
The GTL facility, the first of its kind in the U.S, will produce four million
tons per annum (mtpa), or 96000bbl/d of high quality transportation fuel,
including GTL diesel and other value-adding chemical products.
Current project costs for the GTL facility are estimated between US$11 billion
and US$14 billion. The GTL project will be delivered in two phases, with each
phase comprising 48000 bbl/d. The first phase is planned to come into
operation in the 2018 calendar year and the second phase the following
The world-scale ethane cracker will allow Sasol to expand its differentiated
ethylene derivatives business in the U.S. The cracker will also benefit from
the current low U.S. natural gas prices and the abundance of ethane.
Current cracker project costs are estimated between US$5 billion and US$7
billion. Sasol expects beneficial operation to be achieved during the 2017
calendar year. It will produce an estimated 1,5 mtpa of ethylene with
downstream derivative plants. Sasol also has a differentiated portfolio of
ethylene-based technologies that will enable it to meet growing demand for
high value-add chemicals.
The integrated GTL and ethane cracker projects will, together, create a
minimum of 1200 permanent positions, 7000 construction jobs at peak and
thousands of indirect jobs both in Louisiana and in the rest of the U.S.
The complex will benefit from a competitive incentive package, formalized in a
Cooperative Endeavor Agreement with the state of Louisiana, supported by
Sasol today also announced it will adopt a phased approach to the next stage
of its planned GTL facility, in western Canada. The feasibility study was
successfully completed in 2012 and the required regulatory application and
land procurement processes are underway. However, in accordance with the need
to prioritize Sasol's growth portfolio, this investment opportunity will be
phased after the integrated Lake
Charles GTL and cracker projects. A decision to proceed with FEED will be
considered at a later stage.
Notes to the editor:
1.Sasol announced that it would embark on feasibility studies to evaluate
the viability of GTL and ethylene cracker facilities in Calcasieu Parish,
Louisiana in September and November 2011, respectively.
2.GTL diesel is a cleaner-burning, high performance fuel with significant
emission reduction benefits. GTL diesel can be used in existing vehicles
and fuel delivery infrastructure, without modifications.
3.GTL facilities can produce a variety of high-quality products, and the
feasibility study has proposed producing:
a) GTL diesel
b) GTL naphtha
c) Liquefied petroleum gas (LPG)
d) GTL base oils
f) Linear alkyl benzene (LAB)
g) Medium and hard wax
4.Sasol produces a range of ethylene derivatives in our existing chemicals
businesses, ranging from solvents and surfactants to polymers and other
5.Core Sasol ethylene derivatives include: ethylene oxide, MEG, Ziegler
alcohol, Guerbet alcohol, ethoxylates, a variety of polyethylene products
6.As with mega projects of this nature, a final investment decision will
follow the FEED process.
Committed to excellence in all we do, Sasol is an international integrated
energy and chemicals company that leverages the talent and expertise of our
more than 34000 people working in 38 countries. We develop and commercialize
technologies, and build and operate world-scale facilities, to produce a range
of product streams, including liquid fuels, chemicals and electricity.
While continuing to support our home-base in South Africa, Sasol is expanding
internationally based on a unique value proposition, which links our diverse
businesses into an integrated value chain supported by top-class functions.
Forward-looking statements: Sasol may, in this document, make certain
statements that are not historical facts and relate to analyses and other
information which are based on forecasts of future results and estimates of
amounts not yet determinable. These statements may also relate to our future
prospects, developments and business strategies. Examples of such
forward-looking statements include, but are not limited to, statements
regarding exchange rate fluctuations, volume growth, increases in market
share, total shareholder return and cost reductions. Words such as "believe",
"anticipate", "expect", "intend", "seek", "will", "plan", "could", "may",
"endeavour" and "project" and similar expressions are intended to identify
such forward-looking statements, but are not the exclusive means of
identifying such statements. By their very nature, forward-looking statements
involve inherent risks and uncertainties, both general and specific, and there
are risks that the predictions, forecasts, projections and other
forward-looking statements will not be achieved. If one or more of these risks
materialise, or should underlying assumptions prove incorrect, our actual
results may differ materially from those anticipated. You should understand
that a number of important factors could cause actual results to differ
materially from the plans, objectives, expectations, estimates and intentions
expressed in such forward-looking statements. These factors are discussed more
fully in our most recent annual report under the Securities Exchange Act of
1934 on Form 20-F filed on 12 October 2012 and in other filings with the
United States Securities and Exchange Commission. The list of factors
discussed therein is not exhaustive; when relying on forward-looking
statements to make investment decisions, you should carefully consider both
these factors and other uncertainties and events. Forward-looking statements
apply only as of the date on which they are made, and we do not undertake any
obligation to update or revise any of them, whether as a result of new
information, future events or otherwise.
SOURCE Sasol Limited
Contact: In South Africa: Jacqui O'Sullivan, GM: Group Communication, Direct
telephone +27 (11) 441 3252; Mobile +27 (0) 82 883 9697;
firstname.lastname@example.org, or Alex Anderson, Group media manager, Direct
telephone +27 (11) 441 3295; Mobile +27 (0) 71 600 9605;
email@example.com; In the United States: Michael Hayes, Direct telephone
Press spacebar to pause and continue. Press esc to stop.