Sasol advances gas-to-liquids plan in Louisiana

Published on NewsOK Modified: December 3, 2012 at 12:25 pm •  Published: December 3, 2012
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South African chemicals and energy company Sasol Ltd. said it could spend up to $21 billion to build a complex in Louisiana to turn natural gas into chemicals, diesel and other fuels.

The company said Monday that it will begin initial engineering work on a long-discussed complex in Westlake, La., that will use domestic natural gas, which is among the cheapest in the world, to make higher-value chemicals and fuels.

"We can monetize these gas resources in North America," said Sasol CEO David Constable in an interview.

A final decision on the project — and its final expected price — won't be unveiled until 2014. The complex, if built, will employ 7,000 construction workers during peak construction and 1,200 permanent workers, the company said.

The company expects to spend $5 billion to $7 billion on a chemical plant and later add an $11 billion to $14 billion gas-to-liquids plant that will turn natural gas into diesel. Sasol's estimated cost has risen recently by nearly $6 billion because it decided to go ahead without a partner and to expand the number of chemicals and other products the complex can make.

The chemical plant would begin operation in 2017, and the diesel plant would come on line in two stages beginning in 2018 and 2019. The diesel plant would produce a total of 4 million gallons of diesel per day.

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