JOHANNESBURG, Aug. 26, 2019 /PRNewswire/ -- As noted in our
16 August 2019 communication, a
problem relating to a large heat exchanger on our Ethane Cracker
which interrupted the start-up for several days was successfully
resolved and start-up resumed.
We are currently halfway through achieving our 72 hour
beneficial operation production test run on the Ethane Cracker.
On 24 August 2019, we reached the
important milestone of producing ethylene at the LCCP that meets
the feedstock requirements of some of our downstream units.
However, the ethylene produced is marginally below polymer grade
specification due to the acetylene reactor system that is not
performing as expected. Efforts to upgrade ethylene to polymer
grade specification are underway with the support of the catalyst
supplier and the technology licensor.
We are currently operating the plant stably at a capacity
utilisation of around fifty percent which is in line with our
ramp-up plan. The ability to manage our facilities and meet our
production needs in the US as an integrated site, now allows us the
flexibility to consume this ethylene produced internally and to
place it externally.
The further ramp up in volumes will be executed as these current
operational issues are resolved.
The completion of all other downstream derivative units has
continued to advance. However, schedule pressure is evident in most
areas and the latest forecast for beneficial operation dates of the
units is provided below:
Low Density
Polyethylene
|
November 2019
(previously mid October 2019)
|
Ziegler
|
January 2020
(previously January 2020)
|
Ethoxylates
|
January 2020
(previously December 2019)
|
Guerbet
|
March 2020
(previously February 2020)
|
As a consequence of these technical issues and the revised
beneficial operation dates, the LCCP earnings before interest, tax,
depreciation and amortisation (EBITDA) guidance for the 2020
financial year has been adjusted from US$300-350 million to US$150-300 million.
Notwithstanding the revisions to the beneficial operation dates,
the cost guidance for the LCCP of US$12,6-12,9 billion remains unchanged. We remain
confident that the incremental costs resulting from the delay can
be absorbed within the existing base cost and contingency
buffer.
Disclaimer – Forward-looking statements
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)
initiative 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.
For further information, please contact:
Feroza Syed, Chief Investor
Relations Officer
Direct telephone: +27-(0)-10-344-7778
investor.relations@sasol.com
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SOURCE Sasol Limited