Shell considers GTL plant in Louisiana

Royal Dutch Shell has picked a site in Louisiana in the U.S.A. for a plant costing at least USD12.5 billion that would turn natural gas into diesel, jet fuel and other liquids, including base oil.
Shell said the project, which is no sure thing, could help harness more domestic natural gas to make transportation fuels. The company will continue to consider the option before making an investment decision about developing the site in Ascension Parish, according to a news release from the Louisiana governor’s office.
“Should we move forward with the project, we expect project costs to be well in excess of the minimum spend that was agreed upon with the state of Louisiana,” said Jorge Santos Silva, Shell’s executive vice president directing integrated gas activities for Shell Upstream Americas.
Louisiana offered Shell a performance-based incentive of USD112 million “to reimburse costs associated with necessary public road improvements, land acquisition and other infrastructure costs,” the state said in the news release.
Shell’s evaluation of such a project represents another move by industry to take advantage of a production boom that is keeping the price of U.S. natural gas low. Power plants, chemical plants and planned export facilities are all looking to harness the resource.