Shell leaves a major LNG project in the USA
British-Dutch energy company Royal Dutch Shell Plc withdrew from Lake Charles’s major US LNG export facility after the recent collapse in energy prices.
"Given the current market conditions, Shell announces that it will not continue to participate in the proposed Lake Charles LNG project," the company said. "Accordingly, Energy Transfer will take on the responsibility as the project developer." It was planned that Shell and Energy Transfer will equally participate in the Lake Charles project (Louisiana), which aims to transform the existing Energy Transfer import terminal into an infrastructure for the export of US gas with a capacity of 16.45 million tons per year. “Although we still believe in the long-term viability and benefits of this project, this is not the right time for Shell’s investments,” said Maarten Wetselaar, director of Shell’s integrated gas and new energy business. Shell said last week that it would cut spending by $ 5 billion to below $ 20 billion in 2020. The company also suspended its $ 25 billion share buyback plan amid a collapse in oil prices.