European oil giant Royal Dutch Shell Plc (RDS-A, RDSA.L, RDSB.L, RDS-B), through further investments in liquefied natural gas or LNG for Transport, intends to utilize North American natural gas to provide an innovative and cost-effective fuel for its commercial customers.
Shell and its affiliates plan to bring LNG fuel one step closer for its North American marine and heavy-duty on-road customers by taking a final investment decision on two small-scale liquefaction units. These two units would form the basis of two new LNG transport corridors in the Great Lakes and Gulf Coast regions. Further, Shell is working to use natural gas as a fuel in its own operations.
In the Gulf Coast Corridor, Shell plans to install a small-scale liquefaction unit at its Shell Geismar Chemicals facility in Geismar, Louisiana, in the U.S. Once operational, this unit would supply LNG along the Mississippi River, the Intra-Coastal Waterway and to the offshore Gulf of Mexico and the onshore oil and gas exploration areas of Texas and Louisiana.
In the Great Lakes Corridor, the Energy major plans to install a small-scale liquefaction unit at its Shell Sarnia Manufacturing Centre in Sarnia, Ontario, Canada. Once operational, this project would supply LNG fuel to all five Great Lakes, their bordering U.S. states and Canadian provinces and the St. Lawrence Seaway. The Interlake Steamship Company is likely to be the first marine customer in this region, as it begins the conversion of its vessels, the company said.
The two new liquefaction units may begin operations and production in around three years.
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