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Researched by Industrial Info Resources (Sugar Land, Texas)--As part of "a comprehensive plan to conserve cash in response to lower international oil prices," South Africa-based Sasol Limited (NYSE:SSL) has announced that it will delay the final investment decision for its massive gas-to-liquids (GTL) project near Lake Charles, Louisiana.
The project has an estimated total investment value of more than $14 billion and would produce approximately 96,000 barrels per day of clean diesel, jet fuel and other liquid fuels from natural gas. The final investment decision on the project was expected later this year. However, the economic viability of the plant has become questionable at current low crude prices.
Unlike Royal Dutch Shell (NYSE:RDS.A) (The Hague, Netherlands), which in 2013 unconditionally canceled a similar GTL project further east in the state in Ascension Parish, Sasol has not completely abandoned the project. In a company press release, David Constable, president and CEO of Sasol, said: "Albeit at a much slower pace, we will continue to progress the U.S. GTL facility. This will allow us to evaluate the possibility of phasing in the project in the most pragmatic and effective manner."
Sasol has emphasized that it will continue to develop its nearby chemicals complex, which includes construction of a $2.5 billion ethane-fed ethylene production unit and other downstream units. "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, which will enable future growth for several decades to come," says the company.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and ten international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The project has an estimated total investment value of more than $14 billion and would produce approximately 96,000 barrels per day of clean diesel, jet fuel and other liquid fuels from natural gas. The final investment decision on the project was expected later this year. However, the economic viability of the plant has become questionable at current low crude prices.
Unlike Royal Dutch Shell (NYSE:RDS.A) (The Hague, Netherlands), which in 2013 unconditionally canceled a similar GTL project further east in the state in Ascension Parish, Sasol has not completely abandoned the project. In a company press release, David Constable, president and CEO of Sasol, said: "Albeit at a much slower pace, we will continue to progress the U.S. GTL facility. This will allow us to evaluate the possibility of phasing in the project in the most pragmatic and effective manner."
Sasol has emphasized that it will continue to develop its nearby chemicals complex, which includes construction of a $2.5 billion ethane-fed ethylene production unit and other downstream units. "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, which will enable future growth for several decades to come," says the company.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and ten international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
