Shell has abandoned plans to build a massive gas to liquids plant in the US after balking at the £12billion-plus costs.
The project, which would have been in Louisiana, would have seen the supermajor developing a plant for turning natural gas into jet fuel, diesel and other liquids, similar to its Pearl facility in Qatar.
But the construction costs, plus the need to buy in gas from the US national grid to supply the Gulf Coast project, have proved too much for the Dutch oil giant.
The company admitted the cost, and uncertainty over oil and gas prices, had scuppered the project despite the natural gas supplies in the region.
“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,” admitted Shell chief executive Peter Vosser.
Louisiana had offered more than $110million in incentives to encourage Shell to build the 140,000-barrel a day facility on the Mississippi River.
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