LNG has the potential to provide real economic and environmental benefits for operators of fleets of large, heavy-duty trucks, ships and trains. As a transport fuel, it lowers emissions of sulphur, particulates and nitrogen oxides, and the energy density of LNG means that it can offer the distance range that operators need. The potential cost advantage in using gas rather than oil products can reduce the payback time for investment in infrastructure, and LNG used in trucks and other heavy duty vehicles can mean quieter traffic, which is particularly important for working at night. Several manufacturers are already supplying LNG-powered engines for a range of vehicles. As a fuel for ships, LNG is not a new idea. Ocean-going LNG carriers have been using it for more than 45 years. Shell has been a pioneer in such shipping, with an excellent track record in terms of the safe storage and handling of LNG.
We see the main growth opportunities in the near term to be in road transport and coastal or inland shipping. Increasingly stringent emissions regulations, abundant supplies of competitively priced natural gas, and the sheer scale and pace of demand for fuel are driving these opportunities.
In 2011, Shell took the final investment decision on the Green Corridor project. It will develop a retail infrastructure for the supply of LNG along a busy truck route in the province of Alberta, Canada. The LNG will be supplied from a 0.3 mtpa plant near Calgary based on Shell’s innovative low-cost Moveable Modular Liquefaction System.
