Sasol approves R89bn US project

463 A Sasol garage around the Orlando Stadium in Soweto. 251009. Picture: Bongiwe Mchunu

463 A Sasol garage around the Orlando Stadium in Soweto. 251009. Picture: Bongiwe Mchunu

Published Oct 27, 2014

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Johannesburg - Sasol, the world’s biggest make of motor fuel from coal, said it approved the construction of an $8.1 billion (R89 billion) ethane cracker and derivatives complex in the US.

The plant will produce 1.5 million metric tons of ethylene annually, the Johannesburg-based company said in a statement today.

Sasol appointed Fluor Technip Integrated, a joint venture between Fluor and Technip, as the primary engineering, procurement, and construction management contractor.

WorleyParsons will support Sasol’s project-management team.

Ethylene is a gas that helps make chemicals used in plastics and detergents.

“Once commissioned, this world-scale petrochemicals complex will roughly triple our chemical production capacity in the US,” chief executive David Constable said in the statement.

Sasol said it’s “well-advanced” in raising the funds for the build and will use “a variety of international US-based dollar sources.”

The facility will achieve beneficial operation in 2018, it said.

A further $800 million will be invested in infrastructure and utility improvements around Lake Charles, it said.

The company has previously said it will follow the decision on the cracker with one on a gas-to-liquids plant 18 to 24 months later.

Sasol declined for a fourth day, losing 1.7 percent to 547.70 rand by 3:17 pm in Johannesburg. - Bloomberg News

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