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 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.”
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.