South African petrochemical company Sasol now expects a loss from its Lake Charles Chemicals Project in Louisiana for the fiscal year of 2020 due to the declining oil prices amid the coronavirus pandemic, according to the company’s statement seen by SSESSMENTS.COM. Sasol previously expected to generate $50 million-$100 million in EBITDA from the complex, but it then reversed the guidance to $50 million-$100 million in FY 2020.
The declining demand amid the pandemic has forced Sasol to shut its refinery, ammonia, nitric acid, and chlor-vinyl plants in South Africa in phases. The company also cut its synfuels production by 25%. Last month, Sasol announced plans to divest stakes in several new plants at LCCP as part of its $6-billion fundraising plans. These plants include the new 1.5 million tons/year steam cracker, the older 464,000 tons/year cracker, a 470,000 tons/year LLDPE plant, and a 420,000 mt/year LDPE unit.
Previously SSESSMENTS.COM reported that the LDPE unit at LCCP was damaged by fire during commissioning in January and remained shut for repairs. Sasol now expects to reach beneficial operations at the unit in the third quarter. The company is also on course to start-up a 173,000 tons/year Ziegler alcohols and a 30,000 tons/year Guerbet alcohols unit in the complex by late June.
