PASADENA, Calif., Jan. 5 /PRNewswire-FirstCall/ -- Jacobs Engineering Group Inc. (NYSE: JEC) announced today that it received a contract from Sasol, an integrated oil, gas and chemical company operating worldwide, to provide basic engineering services for the first commercial installation of Sasol's proprietary tetramerization technology.
Officials did not disclose the contract value.
The initial commercial unit is expected to have a combined capacity for 1-octene and 1-hexene of 100,000 tons per year. The location for the first unit has not been determined, however Sasol's chemical complex, located near Lake Charles, La., is a leading candidate.
The basic engineering phase is expected to be complete by the third quarter of 2010. Construction is intended to begin in 2011 with initial production slated for 2013.
In making the announcement, Jacobs Group Vice President Jim Stewart stated, "We are delighted that Sasol has entrusted us with this important project using first-of-a-kind technology. Our participation gives us the opportunity to strengthen our relationship with Sasol and allows us to work in partnership to help meet the increasing demand for Sasol's products."
Sasol is the world's largest producer of 1-octene, with a capacity of 196,000 tons per year. Octene is used primarily as a comonomer in the production of high performance linear low-density polyethylene resins, where it imparts a host of specific characteristics such as strength, thinness, elasticity and puncture resistance in products ranging from dense and durable plastic for wire coatings, automotive interiors, raincoats and strong garbage bags to low-density, high-quality shopping bags, cling-wrap film and myriad related consumer plastics. Octene is also utilized in the production of elastomers, acids and alcohols.
Jacobs is one of the world's largest and most diverse providers of technical, professional, and construction services.
Any statements made in this release that are not based on historical fact are forward-looking statements. Although such statements are based on management's current estimates and expectations, and currently available competitive, financial, and economic data, forward-looking statements are inherently uncertain. We, therefore, caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements. For a description of some of the factors which may occur that could cause actual results to differ from our forward-looking statements please refer to our 2009 Form 10-K, and in particular the discussions contained under Items 1 - Business, 1A - Risk Factors, 3 - Legal Proceedings, and 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations. We also caution the readers of this release that we do not undertake to update any forward-looking statements made herein.
For additional information contact: Michelle Jones 626.578.6968
SOURCE Jacobs Engineering Group Inc.