US Mega Projects

Sasol initiated the Front End Engineering Design (FEED) phases, for our US strategic mega-projects, in December 2012.  The FEED phases for the world-scale ethane cracker, as well as an integrated gas-to-liquids and chemicals facility, will, amongst other elements, inform the sequencing of the projects.

These projects mark the largest single manufacturing investment in the history of Louisiana and also represent one of the largest foreign direct investment manufacturing projects in the history of the US.

The integrated ethane cracker and GTL projects will create approximately 1,200 permanent jobs and 7,000 construction jobs, at peak construction, and thousands of indirect jobs in Louisiana and across the US.

A world-scale ethane cracker and derivatives plant

Sasol’s world-scale ethane cracker and derivatives units, to be developed at our Lake Charles facility in Louisiana, will allow the company to expand our differentiated ethylene derivative business in the US.

The abundance of low-cost ethane and natural gas, along with the rapid growth in gas supply and overall gas market dynamics, has created a leading and cost effective feedstock position for Sasol’s US growth objectives.

The ethane cracker will produce an estimated 1.5 mtpa of ethylene and other downstream derivatives. The product slate will include Ethylene oxide, MEG, Ziegler alcohol, Guerbert alcohol, ethoxylates, a variety of polytheylene products and co-monomers.

The current project costs for the cracker are estimated to be $5 - $7 billion. It is currently envisaged that the FEED phase for the ethane cracker will be completed by the end of 2014 with beneficial operation to be achieved in 2017.

An integrated gas-to-liquids and chemicals facility

Sasol’s gas-to-liquids (GTL) facility, the first of its kind in the US, will convert natural gas into four million tons per annum, or 96,000 barrels per day (bbl/d), of high quality transportation fuel, including GTL diesel.

GTL diesel is a cleaner-burning, high performance fuel with significant emission reduction benefits.

Unlike other proposed alternatives to conventional petroleum-based fuels, GTL diesel can be used in existing vehicles and our fuel delivery infrastructure without modifications. By incorporating GTL technology into the US energy mix, states such as Louisiana will be able to advance the country’s energy independence, through a diversification of supply.

The facility will also produce other valuable products, including GTL naphtha, liquefied petroleum gas, GTL base oils, medium and hard wax, paraffin and linear alkyl benzene. The GTL project will be constructed in two phases, with each phase producing 48,000 bbl/d.

The current project costs for the GTL facility are estimated to be $11 - $14 billion. Sasol plans to initiate operations at the ethane cracker before that of the US GTL facility.

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