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Sasol's U.S. Plant Cost Estimate Jumps to $12.9 Billion

  • Early estimate for Lake Charles project was about $8.9 billion
  • Shares slide the most in 20 years in Johannesburg trading
Modules for Sasol’s Lake Charles project under construction in Louisiana.

Modules for Sasol’s Lake Charles project under construction in Louisiana.

Photographer: Derick Hingle/
Updated on

Sasol Ltd., the world’s biggest maker of fuel from coal, said the cost of its giant Lake Charles chemicals project in Louisiana will balloon to as much as $12.9 billion, or about 50% more than initially planned.

The cost blowout is a further setback for the development that’s part of the South African company’s plan to expand internationally. It has already suffered a number of budget increases because of factors including weather delays. Sasol shares slumped the most in 20 years after the announcement on Wednesday.