South African chemicals and energy company Sasol is planning to build a multibillion-dollar plant to convert natural gas into diesel at Westlake, Louisiana, U.S. at an estimated cost of $21 billion. The plant will use domestic natural gas, which is among the cheapest in the world, to make higher-value chemicals and fuels.
The company said it will start the initial engineering work though the final call on the project will not be unveiled till 2014.
According to the company statement if the complex is built has proposed, will employ 7,000 construction workers during peak construction and 1,200 permanent workers. The company plans to first spend $5 billion to $7 billion on a chemical plant, and later add an $11 billion to $14 billion gas-to-liquids plant.
The chemical plant is expected to begin operation in 2017 and diesel plant in two phases in 2018 and 2019. The diesel plant would produce a total of 4 million gallons of diesel per day.
“It also represents one of the largest foreign direct investment manufacturing projects in the history of the entire United States,” said Louisiana Governor.