30 November 2011 15:52 [Source: ICIS news]
(adds capacity information in third paragraph)
HOUSTON (ICIS)--Sasol’s board of directors has approved a feasibility study for a possible cracker and derivatives project at ?xml:namespace>
The project could cost between $3.5bn and $4.5bn (€2.6bn and €3.4bn), Sasol said.
"The envisaged capacity of the cracker will be to produce between 1m and 1.4m tons of ethylene per annum," Sasol said.
The feasibility study is scheduled for completion in the second half of 2013, the company said.
In another major move, Sasol also said on Wednesday it would pull out of the Arya Sasol Polymers joint venture in
Sasol’s decision to move to a feasibility study on the US project comes after the company completed a pre-feasibility study, which confirmed that a world-scale ethane cracker with downstream ethylene-derivative units at the Lake Charles site “offered an attractive investment opportunity with a sustainable competitive advantage,” it said.
The rapid development of the shale gas industry in
In particular, the availability of significant volumes of natural gas liquids, and specifically ethane, opened up opportunities in the ethane feedstock area for cracker-based chemicals, the company said.
Sasol’s board approved the advancement of the project to a feasibility study to assess in more detail the technical and commercial viability of such a world-scale ethane cracker and the development of possible strategic partnerships, the company added.
A number of firms, including Dow Chemical, Chevron Phillips Chemical, Braskem and Shell, are looking at plans to build new crackers in the
Shell expects to announce a possible site for its cracker in the
A LyondellBasell executive recently voiced scepticism over the many announcements for new
Meanwhile, Canada-based NOVA Chemicals has contracted with producers in the Marcellus Shale region to ship ethane to its petrochemicals complex at Corunna in southern
($1 = €0.75)
Additional reporting by Lane Kelley and Sheena Martin
For more on Sasol and other producers visit ICIS company intelligence
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|