Royal Dutch Shell Friday announced that the company 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 in a press release said that "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." Shell is the leading energy company in integrated gas, which includes liquefied natural gas and GTL. The company has built up substantial new options for integrated gas investment, particularly in Australia and North America in recent years, noted the press release.
Shell chief executive 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."