GTL Investment Reconsidered Sasol Might Postpone its Louisiana GTL Plant Project
With oil prices remaining low, Sasol reconsiders global investment projects: The South African company delays the final decision for building a large scale GTL plant in Louisiana.
Lake Charles, Louisiana/USA – In response to low international oil prices, Sasol has to formulate comprehensive plan to conserve cash. Therefor, the company has decided to delay the final investment decision on its large-scale, gas-to-liquids (GTL) plant in Louisiana. The timing of the decision will take into consideration progress made with the execution of the Company’s world-scale ethane cracker and derivatives complex, prevailing market conditions and other strategic investment opportunities.
“Albeit at a much slower pace, we will continue to progress the US GTL facility. This will allow us to evaluate the possibility of phasing in the project in the most pragmatic and effective manner. North America and our home base in Southern Africa remain strategic investment destinations for Sasol,” said David Constable, President and Chief Executive Officer.
Sasol is proceeding with the construction of the ethane cracker and derivatives complex in Louisiana. Given the robust project economics, the Sasol team is confident that this facility is the first step in developing the site near Lake Charles into an integrated multi-asset, multi-business hub.