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Sasol nixes gas-to-liquid plant in Lake Charles; ethane cracker still on track

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South African energy and chemical company Sasol says it’s dropping plans for a $14 billion U.S. plant to convert natural gas to liquid fuels because of low oil prices and a volatile market. For the same reasons, it says it’s also pulling out of Canadian shale.

Sasol made the announcement Thursday in a news release posted on its website. The plant would have been in Lake Charles. Sasol had announced nearly three years ago that it was delaying a final investment decision on the project to conserve cash in response to lower oil prices.

“While our current GTL assets are generating good returns and cash flows, the value proposition for Sasol to build new GTL projects is uneconomic against a volatile external environment and structural shift to a low oil price environment,” the company said in a statement Thursday.