Royal Dutch Shell plc says it will not move forward with the proposed 140,000 barrels per day Gulf Coast gas-to-liquids (GTL) project in Louisiana and will suspend any further work on the project.
Shell, says it is the industry leader in GTL technology, and has carefully evaluated a number of development options for GTL on the US Gulf Coast, using natural gas feedstocks.
Despite the ample supplies of natural gas in the area, the company has taken the decision that GTL is not a viable option for Shell in North America, at this time, due to the likely development cost of such a project, uncertainties on long-term oil and gas prices and differentials, and Shell’s strict capital discipline.
CEO Peter Voser commented: “We are making tough choices here, focusing our efforts and capital on the most attractive opportunities in our world-wide portfolio, to add value for shareholders.”
"Shell thanks the Governor of Louisiana, his staff, Parish officials, regulators and the community for the opportunity to consider locating this project in Louisiana, and the company looks forward to continuing a long, successful relationship with the state."