Sasol Commences Front-End Engineering and Design Phase for Integrated Complex
The GTL facility — The First of its Kind in the U.S
The GTL facility, the first of its kind in the U.S, will produce four million tons per annum (mtpa), or 96,000 bbl/d 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 bbl/d. 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.
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.
The integrated GTL and ethane cracker projects will, together, create a minimum of 1,200 permanent positions, 7,000 construction jobs at peak and thousands of indirect jobs both in Louisiana and in the rest of the U.S.
The complex will benefit from a competitive incentive package, formalized in a Cooperative Endeavor Agreement with the state of Louisiana, supported by Governor Jindal.
Sasol today also announced it will adopt a phased approach to the next stage of its planned GTL facility, in western Canada. The feasibility study was successfully completed in 2012 and the required regulatory application and land procurement processes are underway. However, in accordance with the need to prioritize Sasol’s growth portfolio, this investment opportunity will be phased after the integrated Lake Charles GTL and cracker projects. A decision to proceed with FEED will be considered at a later stage.