Lake Charles is value accretive in the long term

Despite the announcement in August revising the cost estimate of its Lake Charles chemicals project (LCCP) by about $2.9-billion, South African petrochemicals giant Sasol remains confident that the project is value accretive to shareholders in the long term. The project, located adjacent to Sasol’s current chemicals operations in Louisiana, in the US, consists of a 1.5-million-ton-a-year ethane cracker, and six downstream chemical projects. The downstream projects include two large polymers plants, an ethylene oxide/ethylene glycol plant, and three smaller, higher-value derivative plants.