The Kansas City Southern Railway Co. (KCSR) will build a long-lease storage in transit (SIT) rail yard to support integrated energy and chemical company Sasol Chemicals (USA) LLC’s new ethane cracker and derivatives project in Lake Charles, La., under an agreement with Sasol, parent transportation holding company Kansas City Southern (KCS) said June 8.

The final investment decision for the $8.1 billion ethane cracker and derivatives complex was announced by Sasol in October 2014. The ethane cracker will produce 1.5 million tonnes of ethylene per year. There are six chemical manufacturing plants. An additional $800 million will support infrastructure and utility improvements and land acquisition. The Lake Charles location will become a multi-asset site, KCS said. Construction is underway, and the facility is scheduled to be operational in 2018.

"We are very pleased to expand our relationship with Sasol by entering into this long-term lease agreement,” said Patrick J. Ottensmeyer, KCS’ president. “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.”

KCSR will also replace and expand the Mossville, La., rail car classification yard.

Kansas City Southern is based in Kansas City, Mo.

Sasol is based in South Africa.