Sasol proceeds with FEED stage for US GTL plant, ethane cracker

HOUSTON (ICIS)–Sasol is moving forward with the front-end engineering and design (FEED) phase for an integrated gas-to-liquids (GTL) facility and world-scale ethane cracker at its Lake Charles site in southwest Louisiana, the South African energy and chemicals company said on Monday.

“Through our innovative energy and chemicals technologies, we will provide the United States with world-class, cleaner-burning fuel, contribute to the country’s energy security, boost downstream manufacturing capacity and diversify the utilisation of domestic gas resources,” said David Constable, Sasol’s CEO.

The $11bn-14bn (€8bn-11bn) GTL facility will be the first of its kind in the US, producing 96,000 bbl/day of fuel, including GTL diesel, Sasol said.

The first 48,000 bbl/day phase will begin operation in 2018, followed by the second phase the following year.

Taking advantage of low US natural gas prices and the abundance of ethane, the cracker will produce 1.5m tonne/year of ethylene, Sasol said.

The cracker project is estimated to cost $5bn-7bn and is expected to be operational in 2017.

Sasol also is adopting a phased approach for its proposed GTL facility in Canada, the company added.

Sasol completed the feasibility study in 2012, and required regulatory applications and land buying is now underway, the company said. 

A decision to proceed with FEED for the Canadian project will be considered later.

($1 = €0.77)