Shell Opts Out of Lake Charles LNG Project as Part of Capex Reduction, an Industrial Info Market Brief

Royal Dutch Shell has decided not to proceed with an equity interest in the proposed Lake Charles liquefied natural gas (LNG) project in Louisiana, citing current market conditions. Energy Transfer will take over as the project developer. Shell will remain involved during the bidding process for the engineering, procurement, and construction contract. Last week, Shell cut its 2020 capital expenditure target to $20 billion or less from about $25 billion. Lake Charles LNG had been a 50/50 joint venture project between Shell and Energy Transfer that would convert Energy Transfer's existing LNG import terminal to a 16.45 million-ton-per-year export facility. Originally, the project was expected to come online by the end of 2020, but received a five-year extension from regulators last year.