South African firm Sasol Ltd. announced this morning that five Baton Rouge-based construction firms have been awarded a total of more than $1 billion in contracts to construct its $8.1 billion ethane cracker in Lake Charles.
Cajun Constructors and James Industrial Constructors will perform site civil works on the project, including site preparation, piling and foundation work. ISC Constructors and MMR Constructors, meanwhile, will perform electrical and instrumentation work. Turner Industries will conduct mechanical, structural steel and piping work.
“With the announcement of our final investment decision, Sasol is excited to advance construction at our ethane cracker and derivatives project site,” says Mike Thomas, senior vice president of U.S. Operations for Sasol, in a prepared statement. “These contractors bring extensive Louisiana and petrochemical construction experience and these appointments reflect our commitment to using Louisiana businesses on the project.”
Sasol says the Baton Rouge firms will be looking to hire more employees and subcontractors as a result of the contracts. Sasol is hosting a business opportunity forum on Thursday, Feb. 19, from 4 to 7 p.m. at the Lake Charles Civic Center for contractors to meet with the Southwest Louisiana business community and share information about available opportunities.
“We encourage local businesses interested in working on the projects to attend this forum and learn about anticipated timelines, application processes and business needs,” Thomas says.
Selection of the Baton Rouge firms for contracts follows the appointment of Fluor Technip Integrated, a joint venture of two firms, as the primary engineering, procurement and construction management contractor on the project. The Baton Rouge firms will be managed by FTI on Sasol’s behalf. Additional construction contractors will be announced as the project progresses, Sasol says.
Late last month, Sasol announced it is re-thinking whether or not to proceed with plans to build a gas-to-liquids plant in Lake Charles that was originally announced in late 2012 and had been estimated to represent a $14 billion and $21 billion investment. —Steve Sanoski
