News Post
Sasol's US Lake Charles cracker completion delay and mounting costs
Sasol Ltd. said capital costs at its Lake Charles chemicals project in Louisiana have increased once again, to as much as $11.8 billion, and the startup will be delayed by as many as five months. Engineering and procurement is largely completed at the site, and construction is 84% finished as of the end of December 2018, the company said. Overall project completion stands at 94% and capital expenditure thus far has come to $10.9B.
Inclement weather in the closing months of 2018 have added to costs and resulted in delays to construction, exacerbated by high absenteeism among workers and unforeseen additions to the scope of the works mean that the final cost of the complex is likely to be $11.6B-11.8B.
"These factors were assessed and quantified late in Q4 2018 and where feasible, management interventions were put in place to arrest the controllable trends," the company said. "Unfortunately, the mitigating actions were not successful in reversing the full impact on schedule and cost".
Source: ICIS News & Bloomberg
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