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Shell selects Louisiana site for US$ 12.5 billion GTL project

LNG Industry,

Royal Dutch Shell has chosen a site in Louisiana as the location for its new multi billion dollar GTL project.

The site south of Baton Rouge in Louisiana has been selected for a potential US$ 12.5 billion gas-to-liquids (GTL) project. The project, which could help to harness more natural gas to make transportation fuels, will be considered further before Shell makes a final investment decision at the site in Ascension Parish, Louisiana.

Shell proposed the Louisiana project last year to take advantage of vast natural gas reserves in the area. If built, the project would be similar to Shell's Pearl GTL plant in Qatar, which has the capacity to produce about 260,000 bpd of liquid fuels.

US$ 112 million incentive

An incentive agreement from the state of Louisiana offered Shell a competitive package that would reimburse the company for up to US$ 112 million in costs to cover necessary public road improvements, land acquisition and infrastructure.

The project also would create at least 740 direct jobs with an average salary of $100,000, according to the press release. Louisiana State University estimates the project would have an economic impact of $77.6 billion over the construction period and the first 15 years of operation of the plant.

“Today’s announcement is a historic new opportunity for Shell to potentially expand its manufacturing operations onshore in a world-class, gas-to-liquids facility in Ascension Parish on the Mississippi River,” Louisiana Governor Bobby Jindal commented. “Here in the heart of Louisiana’s world-scale petrochemical industries, the Gulf Coast GTL project would give thousands more of our people an opportunity for a rewarding career right here at home.”

The GTL project would add to Shell’s efforts to increase the use of domestic natural gas to make fuels and other liquids.


Edited from various sources by Katie Woodward

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