Quantcast

After Sasol ditches plan for $14B gas-to-liquids plant, Louisian - KATC.com | Continuous News Coverage | Acadiana-Lafayette

After Sasol ditches plan for $14B gas-to-liquids plant, Louisiana off hook for $200M in incentives

Posted: Updated:
Work on part of the Sasol ethane cracker project in Westlake is underway at Dynamic Industries at the Port of Iberia Wednesday, April 6, 2016, in New Iberia. Leslie Westbrook/The Advocate Work on part of the Sasol ethane cracker project in Westlake is underway at Dynamic Industries at the Port of Iberia Wednesday, April 6, 2016, in New Iberia. Leslie Westbrook/The Advocate

Sasol's decision to walk away from plans for a multibillion-dollar natural gas-to-liquids plant in Westlake means the state won't be on the hook for more than $200 million in incentives, The Advocate reported.

Sasol abandoned the GTL plans last week but is continuing to build an $11.1 billion ethane cracker near Lake Charles, now almost 80 percent complete.

The Advocate has reported the scrapped gas-to-liquids facility would have costed about $14 billion to construct. The state package that lured Sasol's GTL plant included $115 million for land acquisition and infrastructure costs.

It also included a rarely used rebate program designed to lure new industries and technologies. Under the Competitive Projects Payroll Incentive, Sasol could have gotten a payroll rebate of up to 15 percent for each GTL job, for up to 10 years, according to Louisiana's economic development department. Sasol expected the GTL project to create 750 jobs with an average annual salary of $88,000. Based on those numbers, the rebate would have amounted to about $9.9 million a year over 10 years.

Separately from those incentives, the Industrial Tax Exemption, a state-granted break on local property taxes, would have been worth an estimated $1.7 billion to $2 billion to Sasol had the GTL project gone forward.

Read the full story at The Advocate.

Note: This article's headline was corrected at 11:25 a.m. on Nov. 28, 2017, to accurately reflect the expected cost to construct the scrapped GTL plant The $11.1 billion ethane cracker remains under construction.

WEATHER
Power Doppler HD
Powered by Frankly

© KATC.com 2018, KATC.com
A CORDILLERA COMMUNICATIONS Station
Privacy Policy, | Terms of Service, and Ad Choices

Can't find something?