Chemicals group Sasol is planning to establish an ethane cracker and derivatives complex at its site in Lake Charles, Louisiana, US.
Sasol said it has completed a pre-feasibility study for the projectand is moving forward to the feasibility study phase.
Sasol CFO Christine Ramon said it has approved the advancement of this project into a feasibility study, to evaluate in more detail the technical and commercial viability of an ethane cracker and the development of strategic partnerships at an appropriate level.
With an ethylene capacity of up to 1.4 million tons per year, the ethane cracker project is expected to cost $3.5-4.5bn.
"The rapid development of the shale gas industry in North America and the resulting decoupling of the crude oil and natural gas prices have created many opportunities for growth for Sasol in both fuels and chemicals," Ramon said.
Ramon noted that in particular, the availability of significant volumes of natural gas liquids, and specifically ethane, has opened up opportunities in the ethane feedstock area for cracker-based chemicals.
The company's feasibility study is expected to be completed in the second half of 2013.
The company is also considering selling its stake in Arya Sasol Polymer, a joint venture with Iran's National Petrochemical Company.
The joint venture company operates a 1million tons a year cracker, a 300,000t/year LDPE plant and a 300,000t/year MDPE/HDPE plant in the Pars Special Economic Energy Zone near Asaluyeh, Iran.
