South African petrochemicals firm Sasol could expand its $8.9 billion ethane cracker project in Lake Charles, depending on market conditions, its chief executive tells Reuters this morning.
“Because of the volatility in the market, other things may feature. For example, more cracking capacity versus GTL (gas-to-liquids),” chief executive David Constable told Reuters after the company announced interim results this morning.
Constable’s comments come about six weeks after Sasol said market conditions led it to reconsider whether to build the GTL plant in Lake Charles. The project was announced in late 2012, with subsequent estimates on its value ranging from $14 billion to $21 billion.
In the wake of that announcement, Louisiana Economic Development Secretary Stephen Moret told Daily Report the state’s outlook for manufacturing investment “continues to be outstanding” and highlighted Sasol’s commitment to its plans for the cracker plant in Lake Charles.
Development estimates for the Sasol plant have risen about $800 million from initial expectations of $8.1 billion. In early February, Sasol announced that five Baton Rouge-based construction companies have been awarded a total of more than $1 billion in contracts to build the plant. Among them are Cajun Constructors, James Industrial Constructors, ISC Constructors, MMR Constructors and Turner Industries.
