FT: Shell ditches plans for US gas-to-liquids plant

Royal Dutch Shell has dropped plans for a multibillion-dollar flagship plant in the US that would have converted natural gas into diesel and jet fuel, amid concerns over the costs of the $20bn-plus project.

It said the gas-to-liquids plant was “not a viable option for Shell in North America”, citing the likely cost, “uncertainties on long-term oil and gas prices and differentials”, and the company’s strict capital discipline.

Shell had touted the possible GTL plant in the Gulf of Mexico region as a way to exploit the arbitrage opportunities that have opened between cheap and abundant US shale gas and expensive crude oil.  MORE