Sasol to delay Louisiana GTL plant to conserve cash
But it will proceed with its $8,1 billion investment in an ethane cracker in Louisiana.
JOHANNESBURG - South African petrochemicals group Sasol will delay a decision to invest in its gas-to-liquid (GTL) project in the United States to conserve cash after oil prices tumbled, the firm said on Wednesday.
Sasol's share price has fallen about 34 percent since Brent crude slumped in June last year. With 40 percent of its annual revenue coming from oil, the Johannesburg-based company is vulnerable to the volatile oil market.
"Sasol has decided to delay the final investment decision on its large-scale, gas-to-liquids plant in Louisiana," the company said in a statement.
The company also said it would identify other opportunities to cut costs over the next 30 months.
Despite taking a knock from the oil price, the company said it would proceed with its $8,1 billion investment in an ethane cracker in Louisiana.
A cracker converts ethane taken from natural gas into ethylene, the basic building block for the manufacture of plastics and chemicals. The plant will eventually produce 1,5 million tons of ethylene annually.