Shell Makes Further Investment in Natural Gas

NATIONAL REPORT -- Royal Dutch Shell plc is placing a huge bet on liquefied natural gas (LNG).

The oil company will develop two new LNG transport corridors in the Gulf Coast and Great Lakes regions. In the Gulf Coast corridor, Shell plans to install a small-scale liquefaction unit at its Shell Geismar Chemicals facility in Geismar, La. Once operational, this unit will supply LNG to the offshore Gulf of Mexico; the onshore oil and gas exploration areas of Texas and Louisiana; and along the Mississippi River and the Intra-Coastal Waterway. 

In the Great Lakes corridor, Shell will install a small-scale liquefaction unit in Canada at its Shell Sarnia Manufacturing Centre in Sarnia, Ont. Once operational, this project will supply LNG fuel to all five Great Lakes and their bordering U.S. states and Canadian provinces, as well as the St. Lawrence Seaway.

Pending proper regulatory approvals, these two new liquefaction units are expected to begin operations in about three years, said Shell.

"Natural gas is an abundant and cleaner-burning energy source in North America, and Shell is leveraging its LNG expertise and integrated strength to make LNG a viable fuel option for the commercial market," said Marvin Odum, president of Shell Oil Co. "We are investing now in the infrastructure that will allow us to bring this innovative and cost-competitive fuel to our customers."

The Hague, Netherlands-based Shell also stated it is working to use LNG as a fuel in its own operations or to support its operations.