Shell drops plan for Gulf Coast plant, keeps Monaca ethane cracker on list

Share with others:


Print Email Read Later

Royal Dutch Shell announced today that it's dropping its plans for building a gas-to-liquids plant on the Gulf Coast, narrowing the competition for capital funds available for a proposed ethane cracker in Beaver County.

The company said the cost to build the gas-to-liquids facility was estimated above $20 billion and the difference between the relatively low cost of natural gas and the higher price of liquid fuels wasn't expected to last long enough to make the plant economic.

This means Shell is down to two major capital projects under evaluation -- the ethane cracker near Monaca and liquefied natural gas projects.

Shell's CFO, Simon Henry, foreshadowed today's announcement when he told investors during a quarterly earnings call Oct. 31 that the company will have to choose among the three.

"We can't do all of these," Mr. Henry said. "We will need to make choices which go forward."

Shell spokeswoman Kim Windon said today there is no update on either of the remaining projects.


Anya Litvak: alitvak@post-gazette.com or 412-263-1455.

Join the conversation:

Commenting policy | How to report abuse
To report inappropriate comments, abuse and/or repeat offenders, please send an email to socialmedia@post-gazette.com and include a link to the article and a copy of the comment. Your report will be reviewed in a timely manner. Thank you.
Commenting policy | How to report abuse

Advertisement
Advertisement
Advertisement

You have 2 remaining free articles this month

Try unlimited digital access

If you are an existing subscriber,
link your account for free access. Start here

You’ve reached the limit of free articles this month.

To continue unlimited reading

If you are an existing subscriber,
link your account for free access. Start here