Sasol under siege

South African petrochemicals giant Sasol has come under fire after allegations resurfaced regarding the company’s plant in Louisiana, in the United States.

These allegations date back to 2012, when Sasol announced plans to build a complex to use natural gas to produce liquid fuels and ethylene near Lake Charles in the US.

Years after this announcement, claims were made that Sasol discriminated against certain homeowners through its buyout programme when the company looked to expand available land for its plant.

While the company has strongly denied these claims for years, Carte Blanche recently aired its investigation into the allegations, reigniting furore against the petrochemicals giant.

While headquartered in South Africa, Sasol has various operations outside the country, including its notorious Lake Charles operations.

Sasol received final approval in 2014 to commence construction of its Lake Charles chemical project in the United States.

The project was initially budgeted to cost $8.1 billion (today, R129.86 billion). However, during its six-year construction period, the budget was exceeded. The project ultimately cost $13 billion (today, R208.42 billion).

In the years since, the Lake Charles Chemical Project has not come close to its annual targets and has become a millstone around Sasol’s neck.

In fact, Lake Charles contributed R2.6 billion to the loss Sasol recorded in 2020. Later that year, the company announced that it would sell a 50% stake in the Lake Charles Chemical Project for R33 billion, in a joint venture with LyondellBasell.

Aside from the financial losses, the Lake Charles project has also done some damage to Sasol’s reputation, with allegations about how it approached homeowners when building and expanding the plant.

It should be noted that Sasol has staunchly denied these accusations, including in response to questions from Daily Investor.

Sasol under fire

In 2021, The Guardian published an article outlining all the allegations made against Sasol regarding its plant, particularly in the community of Mossville, Louisiana.

The publication claimed that Sasol gave less money to black homeowners than it paid white homeowners for their properties when the company expanded its chemical complex.

Founded by former slaves in the 1790s, Mossville is a small town in Louisiana, located on the outskirts of Lake Charles.

A predominantly black town, it is located close to the more affluent town of Westlake, which is predominantly white.

Sasol approached residents of both towns when looking to expand its operations in the area, launching a Voluntary Property Purchase Program (VPPP) that offered homeowners in both towns money for their properties.

The Guardian cited an analysis by the University Network of Human Rights, which claimed that the price Sasol paid for property in Mossville was, on average, about 40% lower than in white communities.

The publication further claimed that, while white residents were given the option to negotiate their buyout prices, black homeowners were not afforded the opportunity.

In addition, the publication alleged that Sasol used predatory and aggressive tactics in the process, such as giving residents as little as three months to decide whether to sell their homes.

Sasol also allegedly deducted various fees from homeowners’ final cheques, including legal fees, debts, and liens.

This situation has also inspired a documentary titled “Mossville: When Great Trees Fall”, detailing allegations that Sasol’s operations are polluting the area with “toxic black clouds”.

Many similar complaints were levelled against Sasol in a recent Carte Blanche investigation, which also cited the University Network of Human Rights report.

Carte Blanche reporter Nickolaus Bauer spoke to a Mossville resident who claimed that Sasol used a “divide and conquer” strategy to discriminate against black homeowners.

They further allege that Sasol’s involvement in the community “destroyed” Mossville, with the town now a shell of its former self and a “ghost town”.

Sasol responds

In response to questions from Daily Investor, Sasol rejected all allegations of racial discrimination. 

“These claims are untrue, misleading and inconsistent with how the VPPP operated,” the company said.

“Under no circumstances were property owner demographics considered when determining property values, appraisals, or offers.” 

The company claimed that independent appraisers evaluated all properties using comparable sales in high‑value areas of Calcasieu Parish.

It added that most homeowners received offers equal to the appraised value plus an additional 40% to 60%, with a minimum appraised value of $100,000 for owner‑occupied homes.

“Residents of all races participated across the two distinct property‑purchase programmes that existed at the time, and there were white and African American property owners in both programmes,” it said.

Sasol clarified that it did not initiate the programme, but that it was launched in 2013 at the request of the Mossville community, after extensive resident engagement. 

The company said the programme was voluntary, designed to give property owners choices they had asked for, “and provided generous, above‑market‑value offers to those who wished to move”. “Many accepted; others chose to remain,” it said.

“The programme has been closed for several years. It was not created to force relocation, nor was it tied to regulatory requirements or operational needs,” it said. 

“Indeed, Sasol’s operating permits for Lake Charles were secured without needing ownership of Mossville properties, underscoring that land acquisition was not a condition of operations.”

“Feedback from many former Mossville property owners highlights that the programme was well‑received and enabled multi‑generational families to improve their living circumstances.”

The company further clarified that it has no operational facility in Mossville, but that the Lake Charles Chemicals Complex is located near the towns of Mossville and Westlake.

Sasol said it is “proud” of its longstanding engagement with Mossville residents, saying the company has engaged openly and regularly with community members, developed solutions based on resident input, and provided long‑term support aligned with local needs for over a decade.