Sasol commences FEED phase For integrated gas-to-liquids and ethane cracker complex at Lake Charles

South African-based energy and chemicals company, Sasol, plans to proceed with front-end engineering and design (FEED) phase for an integrated, 96 000 bpd gas-to-liquids (GTL) facility and a world-scale ethane cracker with downstream derivatives, at its Lake Charles site in southwest Louisiana. The GTL facility, the first of its kind in the U.S, will produce four million tons per annum (mtpa) 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 48 000 bpd. The first phase is planned to come into operation in the 2018 calendar year and the second phase the following calendar year. 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. 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." 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.