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Researched by Industrial Info Resources (Sugar Land, Texas)--Sasol Limited (NYSE:SSL) (Johannesburg, South Africa) executives gave a progress report Monday on the company's massive Lake Charles Chemical Project LCCP) in Louisiana, which is 64% complete. The company also discussed other North American projects, as well as its gas drilling endeavors in the Montney Shale in Canada.
The Lake Charles project consists of a 1.5 million-ton-per-year ethane cracker and six downstream units, including low-density polyethylene and linear low-density polyethylene units and an ethylene oxide/ethylene glycol plant. The three downstream units will consume about two-thirds of the ethylene produced by the cracker. The other three smaller downstream units will produce specialty alcohols, ethoxylates and other products. In a press release regarding the company's second-half 2016 results, Sasol said the project was now 64% complete, with work planned to carry over into 2018.
In a conference call regarding the results, Chief Financial Officer Paul Victor said the company spent $1.2 billion on the project during the second half of 2016 and estimated capital expenditures of $2.9 billion for fiscal year 2017 and $2.4 billion in 2018 for the project. The project remains on track to start up in the second half of 2018. In August, Sasol announced that the cost of the LCCP would be approximately $2.1 billion more than originally planned, increasing the total cost to $11 billion. For more information, see August 24, 2016, article - Sasol Confirms Higher Cost for Lake Charles Chemical Project.
In addition to the Lake Charles project, the company also gave results regarding its shale gas drilling in Canada's Montney Shale, saying that the foray had an operating loss of approximately $24 million during the second half of the year, despite a 3% increase in overall gas production, mainly from completion activities on existing wells. The company had no drilling rigs in operation during the period.
Sasol's 50:50 joint venture with INEOS Olefins & Polymers USA (Houston, Texas) in the construction of a high-density polyethylene (HDPE) plant in LaPorte, Texas, is more than 90% complete, according to Sasol, and on track for mechanical completion by mid-2017. "The market conditions for start-up continue to be favourable with low feedstock cost and strong polyethylene market demand projected in 2017," said Sasol in its press release. Construction of the project began in late 2014. The project has an estimated total investment value of $390 million.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The Lake Charles project consists of a 1.5 million-ton-per-year ethane cracker and six downstream units, including low-density polyethylene and linear low-density polyethylene units and an ethylene oxide/ethylene glycol plant. The three downstream units will consume about two-thirds of the ethylene produced by the cracker. The other three smaller downstream units will produce specialty alcohols, ethoxylates and other products. In a press release regarding the company's second-half 2016 results, Sasol said the project was now 64% complete, with work planned to carry over into 2018.
In a conference call regarding the results, Chief Financial Officer Paul Victor said the company spent $1.2 billion on the project during the second half of 2016 and estimated capital expenditures of $2.9 billion for fiscal year 2017 and $2.4 billion in 2018 for the project. The project remains on track to start up in the second half of 2018. In August, Sasol announced that the cost of the LCCP would be approximately $2.1 billion more than originally planned, increasing the total cost to $11 billion. For more information, see August 24, 2016, article - Sasol Confirms Higher Cost for Lake Charles Chemical Project.
In addition to the Lake Charles project, the company also gave results regarding its shale gas drilling in Canada's Montney Shale, saying that the foray had an operating loss of approximately $24 million during the second half of the year, despite a 3% increase in overall gas production, mainly from completion activities on existing wells. The company had no drilling rigs in operation during the period.
Sasol's 50:50 joint venture with INEOS Olefins & Polymers USA (Houston, Texas) in the construction of a high-density polyethylene (HDPE) plant in LaPorte, Texas, is more than 90% complete, according to Sasol, and on track for mechanical completion by mid-2017. "The market conditions for start-up continue to be favourable with low feedstock cost and strong polyethylene market demand projected in 2017," said Sasol in its press release. Construction of the project began in late 2014. The project has an estimated total investment value of $390 million.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
