Sasol Expects Louisiana Petrochemical Complex to Turn a Profit in 2022-2023
Executives with South African refiner Sasol Limited say they expect the company’s massive Lake Charles petrochemical complex in Louisiana to begin turning a net profit after taxes, interest and depreciation in fiscal years 2022-2023. The company has confirmed the expected price tag for the complex will be $2.1 billion more than what it anticipated in October 2014. The cost estimate now stands at $11 billion. Sasol says it expects no further cost overruns.
The Lake Charles Chemical Project (LCCP) consist of a 1.5 million ton-per-year ethane cracker and six downstream chemical units. Located next to Sasol’s existing chemical operations at the site, the company says capital expenditures as of June 30 were $4.8 billion, and that the overall project is 50% complete.
The first unit, a linear low-density polyethylene unit, is expected to begin operations in second-half 2018. It will be followed by the ethane cracker and ethylene oxide and mono ethylene glycol units later that year, with the low-density polyethylene unit shortly afterward. The remaining units will be operational in the second half of 2019.
After the complex has achieved full run rates, Sasol expects earnings before interest, taxes, depreciation and amortization (EBITDA) from all derivative products to be between $1.38 billion and $1.48 billion by year six of the project.
For more information, including the reasons for the cost increase for the project, click here for Industrial Info’s full article.
Industrial Info has tracked components of Sasol’s Lake Charles Chemical Project since December 2011. Industrial Info is following 15,800 Chemical Processing Industry projects across the globe valued at $921.32 billion. For more information on Industrial Info’s Chemical Processing Database, click here.