SASOL had no intention of changing its dividend policy, despite facing a higher bill for its Lake Charles chemicals project in the US, joint CEO Stephen Cornell said on Tuesday. Sasol said three months ago that the cost of the Lake Charles ethane cracker and chemicals plant had escalated to $11bn, from $8.9bn when the investment decision was taken in October 2014. It has now provided a detailed breakdown of the reasons for the $2.1bn cost escalation and the expected returns. Lake Charles in Louisiana will consist of a 1.5-million tonnes a year ethane cracker and six downstream chemicals units making polymers, glycol, speciality alcohols, ethoxylates, and alumina products. The first unit will be in production by the second half of 2018.
Sasol said site and civil construction costs had risen by $750m, largely because of weather and subsurface conditions. Contractor costs rose $680m, and labour costs by $670m. It has taken measures to keep to the revised budget and schedule, incl...
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