Royal Dutch Shell PLC is
considering building a giant plant in Louisiana that would convert natural gas
into diesel fuel, reports from the Wall Street Journal and other media sources
say.
The plant, which could
cost more than $10 billion, would be similar in size to Shell''s Pearl
gas-to-liquids facility in the Mideast nation of Qatar, sources for the story
say. Pearl, which went into operation last June, turns natural gas into enough
diesel to fill more than 160,000 cars a day.
Shell declined to comment
on its plans. The Journal reports that the Anglo-Dutch company is expected to
take up to two years to develop detailed engineering plans to determine if the
plant is economically viable before submitting the project for approval by the
company''s board.
As is well known, Shell''s
plans are the latest sign that companies are seeking new ways to exploit
extensive natural-gas discoveries in the U.S. The boom in gas production from
shale has sent natural-gas prices down 50% over the past year to slightly over
$2 per million British thermal units, the lowest level in a decade. Diesel
prices are near a record, up 4% from a year ago, the Journal reports.