LNG for transport

As a transport fuel, LNG has the potential to provide economic and environmental benefits to operators of large trucks, ships and trains. Ocean-going LNG carrier ships have used it as a fuel for more than 45 years, and we are now bringing its benefits to other types of transport. When used as a fuel, LNG can lower emissions of sulphur, particulates and nitrogen oxides. Its energy density gives distance ranges that transport operators need, and it could help reduce fuel bills.

Whilst we think the pace of growth is more moderate than previously thought, we see long-term demand potential in this activity and continue to explore multiple capital-efficient projects, which we feel provide us and our customers with the best commercial value.

In March 2013, we announced a series of developments. Our first LNG refuelling stations for trucks in Canada opened in Calgary, Alberta. As part of the announcement we stated that future supplies would be provided by a small-scale liquefaction plant at our Jumping Pound facility. While we have decided to cease construction of the plant, we will continue to supply the LNG from a third party.

Shell’s acquisition in 2012 of Gasnor, a Norwegian LNG fuel company that supplies marine and industrial customers, is another example of Shell’s investment in this growth area.