HOUSTON (ICIS)--Sasol’s new Lake Charles Chemicals Project (LCCP) in Louisiana is at 74% overall completion, the South Africa-based producer said on Monday.
LCCP consists of a 1.5m tonne/year ethane cracker, as well as six downstream chemical production facilities, including polyethylene (PE) and ethylene oxide (EO).
Sasol has planned a phased start-up, with benefit operations from its linear-low density PE (LLDPE) and ethylene units expected in the second half of 2018, and from its other plants to follow.
During an earnings update for its fiscal year ended 30 June, the company said that overall construction continues, with engineering and procurement activities nearing completion.
Capital expenditures through 30 June have totalled $7.5bn, with the project expected to remain within its $11bn budget.
When the financial investment decision (FID) was announced in late 2014, estimated costs was $8.1bn.
“Although unplanned event-driven risks may still impact the execution and cost of the project, we are confident that the remaining construction, procurement, execution and business readiness risks can be managed within the budget,” the company said on Monday.
Sasol added that its cracker remains at the lower end of the cost curve for ethylene producers.
Additional reporting by Nurluqman Suratman