Sasol considers building massive ethylene plant near Lake Charles

South African energy and chemicals company Sasol Ltd will conduct a feasibility study for possible construction of a $3.5 billion to $4.5 billion ethylene cracker and derivatives complex in Calcasieu Parish, Louisiana Economic Development says. The study will focus on building the project near Sasol’s existing Lake Charles Chemical Complex in Westlake. Derived from natural gas, ethylene is a major building block of alcohol- and plastic-based products, such as solvents, surfactants and polymers. Should the project move forward, Sasol says it would build one of the largest ethylene cracking facilities in the United States, with production of 1 million to 1.4 million tons per year. “We believe strategic growth in chemicals will take full advantage of the natural gas opportunities along the U.S. Gulf Coast and the anticipated growth will strengthen Sasol’s overall portfolio,” says Sasol CEO David Constable, who described the study as an important next step in the growth of Sasol’s chemical business. The company expects to complete the feasibility study by mid-2013 and make an investment decision at that time.