Calcasieu Parish has been selected by Sasol, a South African energy and chemicals group, for a gas-to-liquids facility where transportation fuels and other products will be produced, the company said in a press release Tuesday.

Sasol will spend the next 18 months conducting a feasibility study in the area, which will consider two options of a 2 million-tons-per-year and a 4 million-tons-per-year facility. The project could create up to 850 permanent positions and up to 5,500 jobs during peak construction periods, the company reported.

“GTL fuels are an important part of the energy mix because they can advance energy independence in a way that is both cost-efficient and environmentally friendly,” Ernest Oberholster, Sasol managing director for new business development, said in a statement. “In addition, unlike other proposed alternatives to conventional petroleum-based fuels, GTL fuel is used in existing vehicles and fuel-delivery infrastructure without modifications.”

In December 2010, Sasol also announced an Ethylene Tetramerization Unit, to be built in Calcasieu Parish.