POST Online Media Lite Edition


Sasol raises cost estimate for U.S. plant around $1 billion

Christian Fernsby |
Sasol has raised the expected cost of its U.S. ethane cracker project by around $1 billion following a review by the project’s new management, the South African petrochemical firm said.

Article continues below

The cost estimate for the Lake Charles plant has been raised to a range of $12.6-12.9 billion, which includes a contingency of $300 million, Sasol said in a stock exchange announcement.

Sasol said a review of the project’s costs and schedule identified concerns relating to its forecasting process and an increase in the projected total cost.

The firm said overall project completion was at 96% with capital expenditure at $11.4 billion as of the end of March.

What to read next

Sasol's white workers strike over racial exclusion
Sasol to reverse provision over tax dispute
Solidarity set to continue strike at Sasol