Sasol lets contract for ethane storage in Louisiana

Sasol Ltd.-owned Sasol Chemicals (USA) LLC has let a contract to Boardwalk Pipeline Partners LP (BPP) subsidiary Boardwalk Louisiana Midstream LLC (BLM) to provide long-term ethane and ethylene storage and transportation services to support Sasol’s proposed integrated ethane cracker and downstream derivatives complex near Westlake, La. (OGJ Online, Mar. 10, 2014; Nov. 25, 2013; Dec. 3, 2012).

The agreement, contingent on Sasol’s final investment decision on the new ethane cracker plant, would allow BLM to expand NGL storage and transportation assets at its Sulphur Hub underground storage location in the Lake Charles, La., area, BPP said.

If the project moves forward, BLM will drill and develop two storage wells, one each for ethane and ethylene, as well as build pipeline installations and an interconnection with a third-party pipeline, the company said.

In addition to more than tripling current storage capacity at Sulphur Hub, the storage wells would also create opportunities for additional storage and transportation services for other petrochemical and refining customers in the Lake Charles surrounding area, according to BLM.

Should Sasol’s board of directors give final approval to the proposed ethane cracker plant, BPP expects the storage and infrastructure development project at Sulphur Hub will cost about $145 million and have an in-service date during second-half 2017, according to BPP’s Apr. 29 filing to US Securities and Exchange Commission.

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