BATON ROUGE - Royal Dutch Shell announced it would be bringing a multi billion-dollar facility to south Louisiana in September but recently reneged.
Along with the facility came 740 new and permanent jobs with an average salary of $100,000 plus benefits. According to the Louisiana Department of Economic Development, the surrounding areas would have seen an estimated $77.6 billion economic impact from plant construction and operation.
The plant, originally intended for Ascension Parish, would have converted natural gas from around the country to diesel liquid.
"Despite the ample supplies of natural gas in the area, the company has taken the decision that it is not a viable option for Shell in North America at this time, due to the likely development cost of such a project, uncertainties on long-term oil and gas prices and differentials and Shell's strict capital discipline," Shell said in a prepared statement.
Shell's announcement to pull the plug comes after original construction estimates jumped from $12.5 billion to over $20 billion.
"We are making tough choices here and focusing our efforts and capital on the most attractive opportunities in our worldwide portfolio to add value for shareholders," Shell CEO Peter Voser said.