Shell Drops Out of Lake Charles LNG Project
Y'all do realize that if we weren't so busy protecting the lives of our friends and family against the coronavirus that we'd be discussing just how low the price of oil has dropped over the past few weeks, right? Well, those prices, another major economic engine for South Louisiana have been taking a nosedive and that has meant some big changes for some big plans.
This decision is consistent with the initiatives we announced last week to preserve cash and reinforce the resilience of our business. Whilst we continue to believe in the long-term viability and advantages of the project, the time is not right for Shell to invest. Through the transition, we will work closely with Energy Transfer.
Those are the words of Maarten Wetselaar, Director, Integrated Gas, and New Energies, Shell, as reported by KPLC television.
The companies had proposed converting Energy Transfer's existing import terminal in Lake Charles to an LNG export facility. While it doesn't appear as though the announcement has not totally derailed the project. It does seem that the control of the project has been shifted more into the hands of Energy Transfer.
A spokesperson for Shell indicated that the company has plans to still work very closely with Energy Transfer on the Lake Charles LNG facility. They (Shell) plan on supporting the initiative with the ongoing bidding process for the engineering, procurement, and construction contract and then plan a phased handover of the project’s remaining activities.