THE DOMINO EFFECT OF THE LOW OIL PRICES: Sasol Limited shelves $14 billion Louisiana gas plant for at least two years
Sasol Limited delayed its decision to build a $14 billion gas to liquids plant in Louisiana Wednesday as the company tries to cut costs amid low oil prices.
The facility, set to be located next to an $8 billion ethane cracker in Lake Charles, was proposed by South Africa-based Sasol in 2013 and would be the first gas to liquids plant in the United States.
Work on the ethane cracker was approved in October and a final decision on the gas to liquids plant was expected within two years, Fuel Fix said.
“Albeit at a much slower pace, we will continue to progress the U.S. GTL facility. North America and our home base in southern Africa remain strategic investment destinations for Sasol,” Sasol CEO David Constable said.
Sasol is moving forward with the construction of the ethane cracker and derivatives complex.
The cracker will convert ethane to ethylene, a chemical used in anti-freeze and water bottles.
The ethane cracker is still expected to be financially viable without the plant, although with lower returns.