Shell Investments To Progress LNG For Transport in North America

| USA, Houston TX

LNG availability for heavy-duty fleet vehicles in Canada – Key Partnerships in Transport Sectors – Powering the marine, trucking, rail and mining industries with LNG

Shell is pursuing engineering and regulatory permits to produce LNG by 2013 at its Jumping Pound gas processing facility in the foothills of Alberta, Canada. Pending regulatory approval, it will be the first investment of its kind for Shell globally and will include production facilities and downstream infrastructure. 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. While awaiting approval, LNG will be supplied to the 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, Shell Oil Company. “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.”

“As global demand for transportation fuels increases, including for LNG, Shell is well positioned to meet this demand. LNG can provide great advantages for our commercial customers as a future energy solution in transportation. LNG will be a welcome addition to Shell’s portfolio of quality transportation fuels,” said Odum.

Powering Progress Together

Shell 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 such marine, on-road trucking, rail, mining and oil and gas drilling applications. Some of these include:

As part of its efforts to expand the use of LNG as a fuel beyond the heavy duty road transport sector, Shell also today announced a Joint Cooperation Agreement with Wartsila North America to further improve the environmental footprint of the US marine industry, as well as other sectors, by accelerating the deployment of larger engines which use LNG as a fuel. To a broad range of Wartsila natural gas powered vessel operators and other customers, Shell will provide the low-cost and low emissions LNG fuel. Under this agreement, the partners will focus first on the US Gulf Coast, and then expand their efforts.

Shell has also entered an agreement with Westport Innovations Inc. (Westport) to launch a co-marketing program in North America.

A Cooperation Agreement with GE’s transportation division to jointly develop a total solution for railroad including associated infrastructure and a locomotive capable of running on both diesel and LNG. This presents a practical alternative fuel source and delivers the benefits of a secure, low-cost and low-emissions fuel for the rail industry.

Additionally, in the mining sector, Shell is actively developing energy solutions which utilize liquefied natural gas (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.

(This article compiled using information from a Shell press release)

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