Sasol’s ethane cracker and derivatives project now under construction in Calcasieu Parish is expected to generate $270 million in revenues for the state and local governments during its construction period.
Sasol released a report on the economic impact of the project today. The company commissioned the study, and says LSU economists Jim Richardson conducted the study. “The benefit-cost ratio for the state could reach nearly 2 to 1 through 2050,” Richardson says in a statement. “Southwest Louisiana and the state will see an outstanding return on their investment in Sasol’s project.”
According to Sasol, $110 million of the $270 million projected in revenues has already been repaid. Sasol also is projected to spend more than $3.5 billion directly in Louisiana during the construction period.
More than 3,500 construction workers are currently on site, and peak construction is expected to reach 5,000 workers there in 2017.
Operations are expected to begin in 2019. The project is projected to generate $7.5 million annually in taxes payable to the state. Local governments will collect $6.2 million annually.
Since 2015, Sasol has paid a net total of $10.4 million in taxes to the state and $8.8 million in taxes to local governments related to ongoing production. Sasol claims that it has paid $7.9 million in state income tax in 2014 and 2015.
