LAKE CHARLES, La. (KPLC) - Citing market conditions, Shell says it is dropping out of the proposed Lake Charles LNG project.
Energy Transfer will take over as project developer.
Shell says it will continue to support Energy Transfer with the ongoing bidding process for the engineering, procurement, and construction contract and then plan a phased handover of the project’s remaining activities.
“This decision is consistent with the initiatives we announced last week to preserve cash and reinforce the resilience of our business,” said Maarten Wetselaar, Director, Integrated Gas and New Energies, Shell. “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.”
The project was proposed to be 50/50 between Shell and Energy Transfer. The companies were to convert Energy Transfer’s existing import terminal in Lake Charles to an LNG export facility.