Stake in Sasol’s Lake Charles plant is on the chopping block
The base chemicals business is more likely to be sold than the performance chemicals units, but at what price?
As synthetic fuel and chemicals producer Sasol moves to cut costs and dispose of assets in a desperate bid to avoid a potential rights issue, a stake in its troubled Lake Charles Chemicals Plant in Louisiana is now firmly on the table. But with world markets in a tailspin amid the Covid-19 pandemic, can the group ever hope to get fair value for a share in its prized, albeit troubled, asset?
The company was hoping the US project would transform Sasol into a global chemicals company, but Lake Charles has so far proved to be Sasol’s biggest headache as costs ballooned 45% to $13bn.