Sasol starting up US Louisiana cracker, expects delays to downstream units

South Africa-based Sasol has initiated start-up at its new 1.5m tonne/year ethane steam cracker in Lake Charles, Louisiana, and expects beneficial operation by the end of July, the company said in an update on its Lake Charles Chemicals Project (LCCP).

The cracker start-up is on track, although market players had thought there might be delays as the company pushed back estimated startup dates for the units in February amid higher costs and construction delays.

This week's update did include two delays to downstream units.

The associated 420,000 tonne/year low-density polyethylene (LDPE) plant, which was scheduled to start up in August, has been delayed four to six weeks as construction and equipment preparation have taken longer than expected, the company said.

The Ziegler alcohols production unit, expected in November, also has been delayed four to eight weeks because of slower piping hydrotesting completion, the company said.

Sasol said it has mitigation plans in place to limit any delays.

Otherwise, the remaining units left to come on line - ethoxylates (ETO) and Guerbet alcohols - are on schedule for December and January, respectively.

Sasol defines beneficial operations as production of on-spec material for at least 72 hours continuously.

The 470,000 tonne/year linear low density PE (LLDPE) unit reached beneficial operations in February and ethylene oxide (EO) in May.

An original cost estimate of $9bn has ballooned to $12.6bn-12.9bn, according to company estimates in May, due to engineering failures, worker absenteeism and inclement weather.

As of the end of June, the project was 98% complete, with engineering and procurement tasks completed and construction 94% finished.

An update stemming from an independent review of the project is expected after August, the company said this week.

Ethylene is a key petrochemical feedstock, used to make polyethylene (PE), ethylene glycol (EG) and polyvinyl chloride (PVC) among other products.

Major US ethylene producers include Chevron Phillips Chemical, DowDuPont, ExxonMobil, INEOS Olefins & Polymers, LyondellBasell and Shell Chemical.