Sasol Announces Beneficial Operation of World-scale Louisiana Ethane Cracker

PR80244

LAKE CHARLES, Louisiana, Aug. 29, 2019 /PRNewswire=KYODO JBN/ --

- Three units now online comprise more than 60% of LCCP's total output

Sasol today announced our world-scale U.S. Ethane Cracker reached beneficial

operation on 27 August 2019. Sasol's new Cracker, the heart of our Lake Charles

Chemicals Project (LCCP), is the third and most significant of the seven LCCP

facilities to come online and will provide feedstock to our six new derivative

units at our Lake Charles multi-asset site.

"The Cracker is the cornerstone of Sasol's transformation into a global

chemicals company," said Sasol Joint President and Chief Executive Officer

Stephen Cornell. "It solidifies our presence in the United States and will

anchor our operations there for decades to come."

Sasol's Lake Charles Ethane Cracker, which uses Technip Stone & Webster

technology, is one of the largest in the world with a nameplate capacity of

1.54 million tons per year. Approximately 90% of the Cracker's ethylene output

will be further processed into commodity and high-margin specialty chemicals

for markets in which Sasol has a strong position, underpinned by collaborative

customer relationships.

The ethylene produced in the facility will be used in six downstream plants on

site to produce a range of high-value derivatives including ethylene oxide,

mono-ethylene glycol, ethoxylates, low density and linear low density

polyethylene, and Ziegler and Guerbet alcohols. Sasol's customers use these

products as ingredients in detergents, fragrances, metalworking and lubrication

fluids, abrasives, paints and coatings, film, food packaging, personal care

products and many more applications and end-markets. The remaining 10% of the

ethylene will be sold on the merchant market and supply Sasol's share of our

high-density polyethylene (HDPE) joint venture with INEOS in Texas.

The utilities and infrastructure systems that enable the entire project are

fully operational. The Linear Low Density Polyethylene and Ethylene

Oxide/Ethylene Glycol units achieved beneficial operation earlier this year.

The Low Density Polyethylene unit is expected to achieve beneficial operation

by November 2019, while the Ziegler Alcohol, Ethoxylates and Guerbet alcohol

units are on track to achieve beneficial operation in early 2020.

"With the first three units commissioned, plants representing more than 60% of

the project's total output are now online," said Sasol Joint President and

Chief Executive Officer Bongani Nqwababa. "Our construction and commissioning

teams are working flat out to deliver the rest of the units between November

2019 and by first quarter of 2020."

At present the Cracker continues to operate stably at a capacity utilisation of

around 50%. The current output is utilised by the LCCP's downstream units and

the remainder is sold to external customers.  The company will continue to

focus on improving the ethylene quality and ramp up the plant in accordance

with our plans.

To date, the project has generated more than 800 full-time quality

manufacturing jobs, with up to 6,500 people on site during construction, US$4

billion to Louisiana businesses and nearly US$200 million in local and state

taxes.

About Sasol:

Sasol is a global integrated chemicals and energy company. Through our talented

people, we safely and sustainably create superior value for our customers,

shareholders and other stakeholders. We integrate sophisticated technologies in

world-scale operating facilities to produce and commercialise commodity and

specialised chemicals, gaseous and liquid fuels, and lower-carbon electricity.

Forward looking statement:

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, developments and business

strategies. Examples of such forward-looking statements include, but are not

limited to, statements regarding exchange rate fluctuations, volume growth,

increases in market share, total shareholder return, executing our growth

projects (including LCCP), oil and gas reserves, cost reductions, our

Continuous Improvement (CI) programme 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 are

discussed more fully in our most recent annual report on Form 20-F filed on 28

August 2018 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.

Source: Sasol Limited