Sasol gives go-ahead for $8.1bn U.S. ethane cracker

JOHANNESBURG (Reuters) – South African petrochemicals group Sasol has taken the final investment decision on an $8.1 billion ethane cracker it plans to build in Louisiana, the company said on Monday.

A cracker converts ethane taken from natural gas into ethylene, the basic building block for the manufacture of plastics and chemicals.

The ethane cracker will eventually produce 1.5 million tons of ethylene annually.

"Approximately 90 percent of the cracker's ethylene output will be converted into a diverse slate of commodity and high-margin specialty chemicals for markets in which Sasol has a strong position," Sasol said.

Sasol said Fluor Technip Integrated, a joint venture between Fluor Corporation and Technip, had been selected "as the primary engineering, procurement, and construction management contractor for this project."