Sasol North America Project Update- Sept. 2014

We recently received our U.S. Corps of Engineers wetlands permit, a significant milestone in moving our projects forward. We plan to begin site clearing and grading on the project site in September. We anticipate taking a final investment decision on the ethane cracker and derivatives complex this year, with the decision on the gas-to-liquids project following within 24 months.

Sasol plans to use a modular construction approach, which involves the assembly and/or fabrication of steel, pipe and equipment into modules away from the construction site. Using this approach, Sasol can reduce congestion, the amount of scaffolding and equipment required onsite, thereby reducing the impact on the community.

The modules and other heavy equipment will arrive via barge at a construction dock facility in Westlake. This facility is located off Sulphur Avenue, near the Westlake water tower. Sasol and its contractors will use a designated heavy haul route (as shown below) to transport the modules and other equipment from the construction dock facility to Sasol’s project site.

To accommodate these heavy haul transports, Sasol will be improving the construction dock facility, widening and strengthening the existing roads, as well as protecting or relocating utilities, signage, and traffic signals. We will communicate an estimated timeline for this work upon issuance of the final engineering and design plans from the Louisiana Department of Transportation and Development, which we expect later this year. We will continue to work closely with the community, local emergency responders, local officials and the Louisiana Department of Transportation and Development.

The Calcasieu Parish Police Jury and Planning and Zoning Board approved our application to rezone approximately 1,500 acres of Sasol-owned property to heavy industrial resulting in a uniform industrial zone for our project site.  One element of this agreement is the commitment to supply potable water and sewer service to individuals who remain in Mossville following the completion of the Voluntary Property Purchase Program.  Sasol worked with the Parish and the various water districts to devise a strategy to satisfy that need.

Sasol’s Voluntary Property Purchase Program has been well-received. More than 80 percent of property owners eligible for the program have registered to participate, meaning they have agreed to have their properties appraised so Sasol can make an offer.  As of September 12, Sasol had extended offers on 492 properties. Of these, offers were accepted on 365 properties, 168 properties have closed, 15 offers were rejected and 127 offers are pending.