South African petrochemical producer Sasol has decided to postpone again the start-up of a low-density polyethylene (LDPE) unit at its Lake Charles Chemicals Project (LCCP) in Louisiana, market sources informed SSESSMENTS.COM. This becomes another delay in the start-up of the 420,000 tons/year unit. In January, the unit was damaged by an explosion and fire which occurred at its high-pressure section during a commissioning process.
Following the fire, Sasol in February said the LDPE plant completion would be delayed until the second half of 2020, with the beneficial operation expected to be achieved in September. However, the company now expects the unit to reach beneficial operation before the end of October, citing a slight delay due to challenges in the completion of the restoration process.
SSESSMENTS.COM previously reported that Sasol’s LCCP had faced delays and cost overruns. These challenges have forced the company to speed up asset divestments to ease debt loads piled when developing the complex. Sasol’s shares have plunged by around 50% so far this year, dragged by the setbacks coupled with a crash in oil prices.
