Tower updates Sasol project

In September of 2011, Gov. Bobby Jindal visited the area to announce a feasibility study for the nation's first GTL plant, which generated an excitement in Southwest Louisiana.

Sasol, however, knew that there were many steps in order to realize that in this area. The possibility was there but not the certainty.

However, just recently Jindal returned to announce that the final step in study — Front End Engineer Design or FEED — was now in process for the Sasol GTL plant and that Sowela Technical Institute will be utilizing $20 million to do workforce preparation.

Nancy Tower, training and communications manager Sasol, Olesins and Surfactants, addressed the Sulphur Rotary Club on Jan. 30 to update the community group on the project.

"We just hurdled Gate 3. We're now in FEED when hundreds of millions are spent to get the plan ready to put a shovel in the ground. The vast majority of projects that pass Gate 3 move forward," announced Tower, emphasizing that this is the time for the community to prepare itself.

Tower reminded Rotarians that Sasol is not a new company. The company has been in SWLA for 50 years, beginning as Conoco Chemicals in 1961. But the company itself is no different.

There are three Sasol projects that will impact this area: the world's first commercial ethylene tetramerization unit that is expected to be in beneficial operation before end of calendar year 2013; Front End Engineering Design (FEED) work for GTL (Gas to Liquid) plant in Southwest Louisiana with construction projected to begin in late 2014; and FEED work for a world-scale ethane cracker and derivatives project in Southwest Louisiana with the first units projected to be online in mid 2016.

"All three of these projects are related to low natural gas prices and getting a greater value out of natural gas," said Tower, "And the location for all three projects is Sasol's existing Lake Charles Chemical Complex adjacent to City of Westlake."

"The tetramerization unit is the first of its kind in the world. The building is going on now, so the large vessels being brought in now are related to this unit," said Tower.

The GTL plant, Sasol's second project, will be the first of its kind in North America. The direct capital investment will be more than $10 billion over the next five to seven years.

"The governor said it will be the single largest private investment in Louisiana's history and, according to research at this point, the single largest foreign investment in US history. It will require 5,000 construction jobs to build, 850 Sasol jobs to operate and support and bring in $335 million in annual state tax receipts. Sasol's GTL value proposition could unlock economic growth for both partners — Sasol and the state of Louisiana. Now we can get excited. This is really a huge project with great potential for our area," Towers said.

Construction for the GTL plant should begin in late 2014 with the first of two operating trains expected to be in operation by 2017 and the second train by 2020.

The Ethane Cracker Project, Sasol's third project, will require 3,000 construction employees to build and 500 Sasol employees to operate and support. The first units are projected to be online in mid-2016.

Although the projects will bring many jobs to this area, only qualified, certified individuals will be considered for the jobs.

"There is no way we have 3,000 qualified construction workers within a 200 mile radius. We are going to have to train up our community and this work force prep is huge. We're going to have to fast-track people in process technology and in all the crafts. So tell all you know to get on waiting lists with Sowela, Lamar, McNeese, ABC, Oakdale Technical College. Expansions are coming and we will be looking for qualified workers," Towers explained.

There will be infrastructure impacts. Thousands of workers will be living and working in the area, but only for a few years. When the construction end is over, most workers leave the area. There will also be taxing and regulating issues to address.

Towers stated that the entire community — schools, businesses, individuals, local governing bodies — all need to prepare for the changes that Sasol will be bringing that will impact this area. She stressed the importance of community preparation.

"We have challenges, but together I have no doubt that this community can meet those challenges. But it's going to stretch us, and there are growing pains associated with projects like this, so we have to think of as many as we can think about and prepare for them so we're not surprised. We are going through an amazing boom, an amazing economic time. We will only be successful if we figure out how to all get together and work this together and consider the impacts to the schools, to the businesses, to the roads, to our employment basis, to everything. There will always be some negative impacts to consider.

"Quoting Colonel Gregory D. Gadson, who spoke at the 109th annual Southwest Louisiana Chamber Banquet, 'Teams come together in tough times, but in really good times, you don't naturally come together. You have to work to come together.' I believe we can team up and be prepared," said Tower.

For more information on the global picture of Sasol, visit www.sasol.com and for information on projects and jobs in North America, visit www.sasolnorthamerica.com. At the bottom of the page there is a link to career opportunities for jobs available.