9 September 2011
Shell plans to have liquefied natural gas (LNG) available for heavy-duty fleet customers beginning in 2012 at select Shell Flying J truck stops in Alberta, Canada. Shell also signed agreements with a number of partners to supply LNG for marine engines along the US Gulf Coast and to support the use of LNG fuels in rail transport and in mining.
Shell said it is pursuing engineering and regulatory permits to produce LNG by 2013 at its Jumping Pound gas processing facility in Alberta, Canada. It will be the first investment of its kind for Shell globally and will include production facilities and downstream infrastructure. Until then, LNG will be supplied to the Shell Flying J truck stops from third-party supply agreements.
With the abundance and low cost of natural gas, Shell is also actively developing new business opportunities with OEMs to substitute LNG for diesel and propane in a number of industrial sectors such as marine, on-road trucking, rail, mining and oil and gas drilling applications. Some of these include:
- A Joint Cooperation Agreement with Wärtsilä North America to accelerate the deployment of larger marine engines which use LNG as a fuel. Under this agreement, Shell will supply LNG fuel for Wärtsilä natural gas powered vessel operators and other customers. The partners will focus first on the US Gulf Coast, and then expand expand their efforts to cover a broader geographical range.
- An agreement with Westport Innovations to launch a co-marketing program in North America, aimed at providing customers a better value when purchasing and operating LNG-powered vehicles by consolidating fuel supply, customer support and maintenance into a single customer-friendly package.
- A Cooperation Agreement with GE Transportation to jointly develop a total solution for railroad including associated infrastructure and a locomotive capable of running on both diesel and LNG.
- Additionally, Shell is developing energy solutions which utilize LNG fuel for the North American mining industry. These solutions will bring fuel cost reductions and emissions improvements to the sector through focused applications in the form of mobile mine haul fleets and other stationary applications. Shell is currently collaborating with technical partners to develop LNG infrastructure solutions for the mining customers.