Shell has decided to pull out of the Lake Charles Liquefied Natural Gas facility in the US in the wake of falling global energy prices.
Given the market conditions, Shell has decided to discontinue its equity interest in the Louisiana project and allow Energy Transfer to take over as project developer.
Director of Integrated Gas and New Energies at Shell, Maarten Wetselaar, said: “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.”
Shell is committed to support Energy Transfer with procurement and construction, until a complete handover takes place.
As experts cite their concerns of whether developing projects will come to fruition or not, Energy Transfer has delayed the final investment decision for the Lake Charles plant, by early 2021.