Statement On Sasol's Lake Charles Chemicals Complex
Sasol activated inclement weather protocols ahead of Hurricane Laura, which made landfall on August 27, 2020, affecting its facilities in Lake Charles, Louisiana. The company temporarily shut down operations due to widespread electrical outages and facility impacts. While damage assessments are ongoing, initial reports indicate no flooding or significant equipment damage. Sasol has insurance coverage for affected units and is in communication with customers regarding production impacts. No adverse effects on potential divestment transactions are anticipated.
- Initial assessments show no flooding damage to equipment at Lake Charles.
- Sasol has insurance coverage for affected units, mitigating financial risk.
- Operations at Lake Charles remain shut down due to electrical outages.
- High winds caused damage to cooling towers at the Lake Charles Chemicals Complex.
JOHANNESBURG, Aug. 31, 2020 /PRNewswire/ -- On 27 August 2020, Hurricane Laura made landfall near Sasol's Lake Charles Chemicals Complex in Southwest Louisiana.
Sasol activated its inclement weather protocols ahead of the storm at all affected Gulf Coast locations in preparation for Hurricane Laura, with the primary concern being the safety of our workforce, the protection of the environment and the integrity of our facilities. Part of the response was to temporarily shut down facilities at Lake Charles, Louisiana, as well as Greens Bayou and Winnie, Texas.
Sasol is supporting its employees in the impacted areas, assisting with temporary housing, transportation and basic amenities for those affected by the storm.
The storm resulted in widespread electrical blackouts and other damage, preventing Sasol from operating most utility systems. High voltage transmission line corridors into the Lake Charles area are damaged, and the full assessment is still in progress by a local power company. Sasol's manufacturing facilities in Lake Charles remain shut down.
Operations recovery crews at the Lake Charles site have started the damage assessment process, and early reports indicate no apparent damage to process equipment and no flooding damage experienced as a result of storm surge. The high wind speeds caused damage to the cooling towers at the Lake Charles Chemicals Complex.
Other Sasol manufacturing operations in the United States in Greens Bayou and Winnie, Texas, were not impacted by the storm.
Start-up of the plants will depend on the availability of electricity, industrial gases, other feedstocks and the restoration process. We are engaging with our customers and suppliers regularly regarding the impacts on production.
Sasol has Atlantic Named Wind Storm (ANWS) insurance coverage for units under construction as well as operating units.
Sasol will update the market as more certainty on the situation in Lake Charles is obtained. We do not envisage that the hurricane will have an adverse impact on any potential divestment transaction related to Sasol's base chemical portfolio in the United States.
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
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 24 August 2020 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.
View original content:http://www.prnewswire.com/news-releases/statement-on-sasols-lake-charles-chemicals-complex-301120970.html
SOURCE Sasol Limited
FAQ
How did Hurricane Laura affect Sasol's operations in Lake Charles?
What measures did Sasol take in response to Hurricane Laura?
Is there any expected impact on Sasol's potential divestment transactions due to Hurricane Laura?
What insurance coverage does Sasol have for Hurricane Laura?
When will Sasol resume operations at the Lake Charles facility?
