Shell Stops Work on GOM Gas Project
Royal Dutch Shell plc announced that the company will not move forward with the proposed 140,000 bpd Gulf Coast gas-to-liquids (GTL) project in Louisiana.
Shell is a leader in GTL technology, and the company said it has 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.
"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,” said CEO Peter Voser.