$16-$21 billion Westlake complex clears permit hurdle

quote:

---

Sasol clears permitting hurdle to begin construction of $16B to $21B chemical complex in Calcasieu Parish

By Katherine Sayre, NOLA.com | The Times-Picayune

South African energy and chemical company Sasol Ltd. has cleared a key permitting hurdle before beginning construction on a $16 billion to $21 billion complex near Lake Charles.

The U.S. Army Corps of Engineers this week approved the company's wetland modification permit to build gas-to-liquids and ethane cracker facilities in Calcasieu Parish.

Beginning this year, Sasol plans to build a $5 billion to $7 billion ethane cracker, which breaks down the molecules of ethane -- found in natural gas -- and creates ethylene, a key ingredient for the petrochemical industry. It's used in products like food packaging, fragrances, detergents and tires. That plant is expected to begin operating in 2017.

Meanwhile, in 2016, Sasol is expected to begin construction on a gas-to-liquids facility. The plant will convert natural gas into diesel fuel and other liquids, producing 96,000 barrels every day. The company says it's the first gas-to-liquids plant in the U.S. It is estimated to cost $11 billion to $14 billion and open in 2019.

The project is expected to create 5,000 construction jobs at peak times and 1,200 permanent jobs.

Louisiana agreed to $257 million in incentives to Sasol including payroll rebates, workforce training and grants. The company will also be looking to the state's industrial tax exemption program, which grants projects 10 years of no property taxes.

According to an economic impact study commissioned by Louisiana Economic Development and LSU, the project will produce a total economic impact over the next 20 years of $46.2 billion.

It is being called one of the largest foreign direct investments in U.S. history.

---