Sasol says it expects to spend more than $3.5 billion in Louisiana through the construction phase of its ethane cracker and derivatives project being built at Westlake in Calcasieu Parish.
The company said $2.5 billion already has been committed to Louisiana contractors and businesses. Capital expenditures during construction will generate $270 million in revenue for state and local governments, of which more than $110 million already has been paid, according to an impact study conducted for the company by economist Jim Richardson.
When operations begin in 2019, the project is expected to generate $7.5 million annually in state taxes. Local governments will collect $6.2 million annually.
“The benefit-cost ratio for the state could reach nearly 2 to 1 through 2050,” Richardson said.
More than 3,500 construction workers are on the site, with peak construction projected to reach 5,000 workers on-site in 2017. Sasol has hired about 350 of the more than 500 full-time jobs it expects to add for the operational phase of the project at an average salary of $80,000.