Sasol says hurricane did not cause flooding damage at Lake Charles

Chemicals and energy group Sasol says early reports indicate Hurricane Laura has not resulted in flooding damage or damage to process equipment at its Lake Charles facility in the US, though high-speed winds have damaged cooling towers.

The storm resulted in widespread electrical blackouts and other damage, preventing Sasol from operating most utility systems, the group said.

High-voltage transmission line corridors into the Lake Charles area are damaged, and the full assessment is still in progress by a local power company. Sasol’s manufacturing facilities in Lake Charles remain shut.

Restarting the plants will depend on the availability of electricity, industrial gases, other feedstocks and the restoration process, the group said, adding it was engaging with its customers and suppliers regularly regarding the effects on production.

The group said it does not expect that the hurricane will have an adverse effect on any potential divestment transaction related to Sasol’s base chemical portfolio in the US.

In afternoon trade on Monday, Sasol’s share was up 0.77% to R144.80, having just more than halved so far in 2020.

gernetzkyk@businesslive.co.za