Sasol updates cost estimate for Lake Charles Project
by ChemOrbis Editorial Team - content@chemorbis.com
South Africa-based company provided an updated guidance regarding its Lake Charles Chemicals Project (LCCP) in Louisiana, the US and projected capital costs on May 22.
The company said that the LCCP’s schedule remains on track with the Ethylene Glycol/Ethylene Oxide (EG/OG) Unit as it is due to achieve beneficial operation within days.
The project completion was also reported at 96%, with construction completion at 89% as of the end of March 2019.
In a revision to the schedule published on February 8 , the forecast total capital cost for the project has been increased to a range of $12.6-12.9 billion. The increase in the anticipated capital costs amounted to around $1 billion as compared to the earlier estimate.
However, the company reaffirmed that the increase in the LCCP’s cost does not alter its capital allocation strategy.
Sasol also stated that the new LLDPE unit already achieved beneficial operation on February 13 as scheduled and its ethane cracker is still expected to achieve beneficial operation in July 2019.
The company said that the LCCP’s schedule remains on track with the Ethylene Glycol/Ethylene Oxide (EG/OG) Unit as it is due to achieve beneficial operation within days.
The project completion was also reported at 96%, with construction completion at 89% as of the end of March 2019.
In a revision to the schedule published on February 8 , the forecast total capital cost for the project has been increased to a range of $12.6-12.9 billion. The increase in the anticipated capital costs amounted to around $1 billion as compared to the earlier estimate.
However, the company reaffirmed that the increase in the LCCP’s cost does not alter its capital allocation strategy.
Sasol also stated that the new LLDPE unit already achieved beneficial operation on February 13 as scheduled and its ethane cracker is still expected to achieve beneficial operation in July 2019.
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