By TOM FOWLER
Royal Dutch Shell has selected a site south of Baton Rouge,
Louisiana, for a potential multi-billion dollar project to
gas into liquid fuels such as diesel and gasoline.
Louisiana will reimburse Shell for up to $112 million in
costs, including public road improvements, land acquisition and
infrastructure, should the company invest more than $12.5
billion in the project, according to a statement
from the company and the state.
The state's transportation department is already planning $32
million in road improvements to serve the site.
Shell proposed the Louisiana project last year to take advantage
of vast natural
gas reserves unlocked by the successful combination of
hydraulic fracturing and horizontal drilling.
If built, the project would be similar to Shell's Pearl
gas-to-liquids (GTL) project in Qatar, which can produce
about 260,000 bpd of liquid fuels.
Shell said it is still several years away from making a
final investment decision on the project. But selecting a site allows
the company to begin engineering studies and the permitting
process, according to Jorge Santos Silva, executive vice
president of Shell.
Dow Jones Newswires