KCS and Sasol Sign Long-Term Agreement to Grow Petrochemical Business in Gulf Region
June 08 2015 - 8:30AM
Business Wire
Kansas City Southern (KCS) (NYSE: KSU) has
announced that its U.S. subsidiary, The Kansas City Southern
Railway Company (KCSR), has reached an agreement with Sasol
Chemicals (USA) LLC (Sasol) for the construction and long-term
lease of a storage-in-transit (SIT) rail yard to support Sasol’s
new ethane cracker and derivatives project in Lake Charles, La. In
addition to building the SIT yard for lease to Sasol, KCSR will
replace and expand its existing rail car classification yard in
Mossville, La.
"We are very pleased to expand our relationship with Sasol by
entering into this long-term lease agreement,” said KCS President
Patrick J. Ottensmeyer. “In addition to serving Sasol's needs in
Lake Charles for many years to come, this investment will better
position KCSR to serve the growing petrochemical industry and other
customers in the Lake Charles area.”
“KCS has been a key partner in ensuring safe and reliable
delivery of our products to our customers for decades,” said Mike
Thomas, senior vice president of U.S. operations for Sasol. “We are
delighted to extend our relationship with KCS as we increase the
number and volume of products we manufacture at our Lake Charles
site over the next several years.”
In October 2014, Sasol announced a final investment decision on
an $8.1 billion ethane cracker and derivatives complex in
Louisiana. At the heart of the project is an ethane cracker that
will produce 1.5 million tons of ethylene annually, benefitting
from significant economies of scale. The complex also includes six
chemical manufacturing plants. An additional $800 million will be
invested in infrastructure and utility improvements, as well as
land acquisition, to establish the Lakes Charles location as an
integrated, multi-asset site that will enable growth for decades to
come. Construction is underway, and the company expects that the
facility will achieve beneficial operation in 2018.
About KCS
Headquartered in Kansas City, Mo., KCS is a transportation
holding company that has railroad investments in the U.S., Mexico
and Panama. Its primary U.S. holding is KCSR, serving the central
and south central U.S. Its international holdings include Kansas
City Southern de Mexico, S.A. de C.V., serving northeastern and
central Mexico and the port cities of Lázaro Cárdenas, Tampico and
Veracruz, and a 50 percent interest in Panama Canal Railway
Company, providing ocean-to-ocean freight and passenger service
along the Panama Canal. KCS’ North American rail holdings and
strategic alliances are primary components of a NAFTA Railway
system, linking the commercial and industrial centers of the U.S.,
Mexico and Canada.
About Sasol
Committed to excellence in all it does, Sasol is an
international integrated energy and chemical company that leverages
the talent and expertise of more than 33,000 people working in 37
countries. Sasol develops and commercializes technologies, and
builds and operates world-scale facilities to produce a range of
product streams, including liquid fuels, high-value chemicals and
low-carbon electricity. While remaining committed to its home-base
of South Africa, Sasol is expanding internationally based on a
unique value proposition.
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version on businesswire.com: http://www.businesswire.com/news/home/20150608005260/en/
Kansas City SouthernC. Doniele Carlson,
816-983-1372dcarlson@kcsouthern.com
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