Shell Pulls Out of Lake Charles LNG Project, Energy Transfer Stays

Is this the beginning of a pullback from LNG projects? Scared of the impacts of the coronavirus and the price of oil crashing, Royal Dutch Shell is pulling out of a 50/50 joint venture partnership with Energy Transfer (ET) to build a new LNG export facility in Lake Charles, Louisiana. In corporate speak, Shell says, “This decision is consistent with the initiatives we announced last week to preserve cash and reinforce the resilience of our business,” and “the time is not right for Shell to invest.” Translation: We’re scared. And who can blame them? All of a sudden there are LNG cargoes sailing the oceans with no place to unload (see LNG Cargoes All Dressed Up with Nowhere to Go).

Please Login to view this content. (Not a member? Join Today!)
You do not have permission to view the comments.

Please Login to post a comment