Shell CEO, Peter Voser
London – Royal Dutch Shell Plc announced in a press release that the company will not move forward with the proposed 140,000-b/d US Gulf Coast gas-to-liquids (GTL) project in Louisiana and will suspend any further work on the project.
Shell said it has carefully evaluated a number of development options for GTL on the Gulf Coast using natural gas feedstocks. Despite the ample supplies of natural gas in the area, the company has made 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.
“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 CEO Peter Voser said in the press release.
