Ineos, CPChem, and LyondellBasell have submitted bids to acquire a large stake in Sasol's Lake Charles Chemical Project (LCCP) in Westlake, Louisiana, Bloomberg reported, citing sources familiar with the matter. According to the report, the bidding process has entered the second round and could raise up to $1.68 billion for the South African cash-strapped Sasol. Sasol, however, refused to provide any details on the ongoing process.
The estimated costs for the almost-completed LCCP have swollen to ZAR192 billion ($11.16 billion). At the same time, the oil price collapse hurt Sasol's finances. In March the company said it was developing measures to address the impact of the COVID-19 pandemic. These options include the divestment of existing assets and forming a partnership for its US-based chemicals business.
LCCP has a 1.54-million tons/year ethane cracker that began operation in 2019. It also houses six downstream units to produce LDPE, LLDPE, ethylene glycol, ethylene oxide, ethoxylates, Ziegler alcohol, and Guerbet alcohol. The surplus ethylene output will be sold on the merchant market and supply a 470,000 tons/year HDPE plant in Texas that Sasol operates in a 50/50 joint venture with Ineos.
