Natural Gas – Conversions, Vehicles and Technology

Shell Ups Investment in LNG Transportation Fuel Market

September 08, 2011

ALBERTA, CANADA – Energy industry giant Shell said it 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. In addition, Shell confirmed it is pursuing engineering and regulatory permits to produce liquefied natural gas (LNG) by 2013 at Shell's Jumping Pound gas processing facility in the foothills of Alberta, Canada.  

Pending regulatory approval, this endeavor is the first investment of its kind for Shell globally and will include production facilities and downstream infrastructure. Until such production begins, LNG will be supplied to the Shell Flying J truck stops from third-party supply agreements.

"With an abundance of natural gas and a growing need for low-emission transportation fuels, today signals a very important step for a significant North American resource," said Marvin Odum, president of Shell Oil Co. "Our strong portfolio and worldwide LNG leadership puts us in a unique position to grow LNG in key markets. And to meet growing demand, natural gas for larger fleet vehicles delivers reduced emissions and offers a cost-competitive alternative to other fuels."

Odum added that LNG represents a “welcome addition to Shell’s portfolio of quality transportation fuels." 

Shell said it is also actively developing new business opportunities with original equipment manufacturers (OEMs) to substitute LNG for diesel and propane in a number of industrial sectors, including trucking applications.   

As part of its efforts to expand the use of LNG, Shell announced an agreement with Westport Innovations Inc. to launch a co-marketing program in North America. The program will provide fleet customers a better economic case for LNG-powered vehicles by consolidating key value chain components, such as fuel supply, customer support and comprehensive maintenance. 

 

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