Sasol's Guerbet Unit at Lake Charles Achieves Beneficial Operation

Rhea-AI Summary

Sasol announced that the Guerbet alcohols unit at the Lake Charles Chemicals Project achieved beneficial operation on June 19, 2020. This marks Sasol's second Guerbet site, complementing the one in Brunsbuettel, Germany. With this, 100% of LCCP's specialty chemicals units are operational, totaling 86% of its nameplate capacity. Additionally, the LCCP Ziegler unit began operations on June 16, boosting alcohol capacity by 173,000 tons annually. The LDPE plant is expected to be operational by September 2020, with total capital expenditure tracking at US$12.8 billion.

Positive

• Guerbet alcohols unit began operations, enhancing LCCP's capacity.
• Total specialty chemicals units at LCCP now fully operational.
• Ziegler unit added capacity of 173,000 tons per year of alcohol.

Negative

• The LDPE plant was damaged in a fire, delaying its operation.

JOHANNESBURG, June 23, 2020 /PRNewswire/ -- Sasol is pleased to announce that the Guerbet alcohols unit at the Lake Charles Chemicals Project ("LCCP") achieved beneficial operation on 19 June 2020. The new Guerbet unit is Sasol's second Guerbet alcohol production site, with the other located in Brunsbuettel, Germany. This means that 100 percent of LCCP's specialty chemicals units are now online, and that 86 percent of total nameplate capacity of LCCP is operational. The Guerbet unit is the sixth LCCP production unit to be brought into production, and has a nameplate capacity of 30 000 tons per year, using Sasol's proprietary technology.

The LCCP Ziegler unit, which achieved beneficial operation on 16 June 2020, is an extension of the existing Ziegler plant in Lake Charles and adds to existing Ziegler capacity from Brunsbuettel in Germany. It is the largest of its kind in the world, adding nameplate capacity of 173 000 tons per year of alcohol and 32 000 tons per year of alumina. The Ziegler unit is the most technically complex of the units in the LCCP and is also based on Sasol's proprietary technology.

The last remaining unit to come online at LCCP will be the low density polyethylene (LDPE) plant, which was damaged during a fire in January 2020. This is on track for beneficial operation by the end of September 2020, as per previous guidance. At the end of May 2020, the LCCP capital expenditure was tracking the previously communicated guidance of US$12,8 billion.

Disclaimer - Forward-looking statements

Sasol may, in this document, make certain statements that are not historical facts and relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" and "project" and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 and in other filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive; when relying on forward-looking statements to make investment decisions, you should carefully consider both these factors and other uncertainties and events. Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.

For further information, please contact:
Sasol Investor Relations,
Feroza Syed
Chief Investor Relations Officer
Direct telephone: +27(0)82-557-7740
investor.relations@sasol.com

 

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SOURCE Sasol Limited

FAQ

What is the significance of Sasol's Guerbet unit achieving beneficial operation on June 19, 2020?

The Guerbet unit's operation signifies the full functionality of Sasol's specialty chemicals units at the Lake Charles Chemicals Project, thus increasing overall production capacity.

What is the nameplate capacity of the Guerbet alcohols unit?

The Guerbet alcohols unit has a nameplate capacity of 30,000 tons per year.

When is the LDPE plant at LCCP expected to become operational?

The LDPE plant is anticipated to achieve beneficial operation by the end of September 2020.

What are the total capital expenditures for the Lake Charles Chemicals Project?

The total capital expenditure for the Lake Charles Chemicals Project is tracking at US$12.8 billion.

What was the operational status of LCCP's Ziegler unit?

The LCCP Ziegler unit achieved beneficial operation on June 16, 2020, adding significant alcohol production capacity.