Royal Dutch Shell Backs Off $20B Louisiana Project
The talk of the energy world is the natural gas boom, but Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) doesn’t see the numbers adding up for the $20 billion project the company had planned for Louisiana, Bloomberg reports. While other companies move forward with gas-to-liquids (or GTL) plants in the area, Shell may shift its attention in North America to opportunities in Canada.
According to a company statement, Shell was concerned about the price of oil and gas in the future, making the planned Louisiana project incompatible with the “strict capital discipline” the energy provider exercises. Shell’s chief executive noted the company was keeping the interests of shareholders first.
“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,” CEO Peter Voser said December 5. According to Bloomberg, Shell will leave attractive tax incentives and a grant from Louisiana worth more than $100 million on the table in making this move. One competitor in the gas-to-liquid fuel conversion space does see opportunities in the industry.