happiness ChikwanhaSasol has shut its US$13 billion Lake Charles Chemicals Project due to Hurricane Laura, which made landfall earlier yesterday on the US Gulf Coast.
“Given Hurricane Laura’s forecast path,” Sasol is temporarily closing its facilities at Lake Charles, Louisiana, as well as Greens Bayou and Winnie, Texas, a spokesman for the company said. The Houston Wickchester office will also close.
Shares were down 3,5 percent to R141,89 at 11:37am in Johannesburg, even as oil prices held steady.
Any damage or delay at Lake Charles caused by the storm will put pressure on Sasol, which has already suffered mismanagement and other issues at the expansion project. Approved in 2014 at an estimated cost of US$8,1 billion, the various setbacks have increased the price to US$12,9 billion.
The natural disaster also strikes as the company is in a process to sell a stake in the facility, the crown jewel in an accelerated asset disposal to pay down debt. The company must now wait for the hurricane to clear before any potential damage can be assessed. — Reuters.
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