Johannesburg - Sasol says it will delay its decision on whether to build what would be the first gas-to-liquids plant in the U.S. as part of plans to mitigate against the drop in oil prices.
The facility, to be located alongside an ethane cracker in Lake Charles, Louisiana, was estimated to cost $14 billion, the Johannesburg-based company said in 2013.
Sasol said in October it’s going ahead with an $8 billion cracker that will convert ethane, a natural-gas liquid, into ethylene used to make chemicals that go into antifreeze and water bottles. The final investment decision on whether to build the GTL plant was expected to follow within two years.
“Albeit at a much slower pace, we will continue to progress the U.S. GTL facility,” Chief Executive Officer David Constable said in a statement on Wednesday. “North America and our home base in southern Africa remain strategic investment destinations for Sasol.”
Producers are revisiting expansion and investment plans after oil fell more than 50 percent over the last six months. Some plans haven’t survived the decline, with Qatar Petroleum and Royal Dutch Shell Plc last week saying they’ve ended plans for a $6.5 billion petrochemical plant in the Middle East nation.
Sasol rose for a sixth day, adding 2.5 percent to 426.87 rand by 11:41 a.m. in Johannesburg.
Bloomberg