31 October 2013 21:31 [Source: ICIS news]
HOUSTON (ICIS)--Final investment decisions on Shell’s proposed gas-to-liquids (GTL) plant in Louisiana, ethane cracker in Pennsylvania and LNG Canada project are not “anywhere close”, the CEO of the Anglo-Dutch global major said on Thursday.
“We cannot afford to take all three together at once, and if we could, I am not sure we have the engineers and the project managers to do so. So we will need to make choices which go forward,” said Peter Voser, who made his comments during a Q3 earnings conference call.
In September, Shell selected a site in Louisiana for a potential GTL plant, estimated to cost $12.5bn (€9.1bn).
The plant, which would be the first of its kind in the US, would use natural gas to produce cleaner-burning transportation fuels, such as natural gas-based diesel and jet fuels, as well as other products such as specialty waxes and building blocks for lubricants, plastics and detergents.
Also, Shell’s $10bn LNG Canada project aims to export liquefied natural gas (LNG) from British Columbia by the 2019-2020 time period.
Altogether, the three projects qualify as an “embarrassment of riches of high-quality opportunities”, said Simon Henry, Shell’s chief financial officer.
“We can't do all of these,” he added. “Some of these essential projects are reaching critical planning milestones over the next few months, and each project is potentially individually material. So we are expecting to make choices of that in the future.”
($1 = €0.73)
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