Sasol Ltd. is considering building an ethane cracker and derivatives complex near its existing Lake Charles Chemical Complex in Westlake, LA. If built, it could be one of the largest ethane crackers in the country, with production of up 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,” said Sasol CEO David Constable, who described the study as “an important next step” in for Sasol’s chemicals business.

Sasol said it expects to complete its feasibility study by mid-2013 and to make an investment decision at that time. The facility could cost $3.5 billion to $4.5 billion.

“Yet again, Louisiana is the focus of a multi-billion-dollar petrochemical investment that underscores the unique advantages of our state’s outstanding business climate and Louisiana’s abundant natural resources,” said Gov. Bobby Jindal. “…[W]e will aggressively support Sasol’s efforts to create new career opportunities for our sons and daughters here in Louisiana.”

Earlier this year the South Africa-based company chose southwestern Louisiana as the site for a gas-to-liquids (GTL) facility, which is slated to be the first plant in the United States to produce GTL transportation fuels and other products (see Daily GPI, Sept. 14).

Earlier this year Dow Chemical Co. launched a plan to increase ethylene and propylene production, as well as integrate U.S. operations into feedstock “opportunities” available from the increasing gas supplies (see Daily GPI, April 25). In addition, Westlake Chemical Corp. has said wants to expand ethane crackers in Louisiana. And Chevron Phillips Chemical Co. LP is evaluating plans to site a “world-class” ethane cracker and ethylene derivatives facility in the Gulf Coast region.

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