Royal Dutch Shell plc said Friday it won't 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 said it has “taken
the decision that GTL is not a viable option for Shell in Noeth America, at
this time, due to the likely development cost of such a project, uncertainties
on long term oil and gas price and differentials and Shell’s strict capital
discipline.”
Shell
and Governor Bobby Jindal had announced in September this year the site for the
project in Ascension Parish. Shell would have spent a minimum of $12.5 billion
under agreements with Louisiana for the project, which would have created 740
direct jobs. CEO Peter Voser said Friday, “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,” the company said in a statement.
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