Sasol Limited reports developments tied to its global chemicals and energy operations, including integrated production in Southern Africa and its International Chemicals business. Recurring updates cover operating and financial results, production performance at Secunda Operations, coal quality, gas and condensate logistics, cost and capital spending discipline, and product supply across energy and chemical value chains.
Company news also includes capital-structure actions by Sasol Financing USA LLC, including cash tender offers and senior note activity, as well as shareholder voting matters, board changes, governance updates, safety performance, and business outlook disclosures.
Sasol announced the successful startup of the Guerbet alcohol unit at the Lake Charles Chemicals Project (LCCP) on June 19, 2020, following a similar achievement with the Ziegler alcohol unit. This completion brings the specialty chemicals units online capacity to 100% and total capacity to 86%. The Ziegler unit adds 173,000 tons per year of alcohol and strengthens Sasol's position in the specialty chemicals market. The company is on track to complete all units by September 2020, with LCCP expenditures at US$12.8 billion, generating over 800 jobs in Louisiana.
Sasol announced that the Guerbet alcohols unit at the Lake Charles Chemicals Project achieved beneficial operation on June 19, 2020. This marks Sasol's second Guerbet site, complementing the one in Brunsbuettel, Germany. With this, 100% of LCCP's specialty chemicals units are operational, totaling 86% of its nameplate capacity. Additionally, the LCCP Ziegler unit began operations on June 16, boosting alcohol capacity by 173,000 tons annually. The LDPE plant is expected to be operational by September 2020, with total capital expenditure tracking at US$12.8 billion.
Sasol is advancing its response to challenges posed by COVID-19 and oil price volatility. Operations have ramped up following the easing of lockdowns in South Africa, with key production facilities, including Secunda and Natref, resuming operations. Sasol has successfully amended loan covenants, increasing balance sheet flexibility, but expects heightened interest costs due to a credit rating downgrade. The company is optimizing its portfolio with a focus on chemicals and energy, announcing a significant restructuring initiative dubbed 'Sasol 2.0' aimed at long-term sustainability.