Americas News
Shell in Great Lakes LNG Bunkering Deal
Energy giant Shell will be the exclusive supplier of liquefied natural gas (LNG) to Great Lakes shipper Interlake Steamship Company (Interlake), which is converting its ships to run on the fuel, the company says.
Interlake plans to convert the first vessel by the spring of 2015 and expects its ships to be the first of their kind to operate on the Great Lakes.
"This move takes our dedication to environmental stewardship to the next level," said Mark Barker, president of Interlake.
"While the marine mode of transportation is already by far the most environmentally friendly way to move goods throughout the Great Lakes region, operating on LNG would further reduce our vessels' environmental impacts."
The company said it is working on engineering and design, regulatory approval, and financing for the conversions, which it said will reduce emissions of carbon dioxide, sulfur oxide, nitrogen oxide, and particulate matter, as well as allowing the ships to operate on fuel produced in North America.
Shell said it plans to install a small-scale liquefaction unit capable of producing 250,000 tonnes per annum of LNG in Sarnia, Ontario, Canada, with Interlake as its first customer.
The liquefaction plant is part of a larger plan by Shell to create two new LNG transport corridors in the Great Lakes and Gulf Coast regions.
The plan also includes another 250,000 tonne per annum liquefaction plant in Geismar, Louisiana in the U.S.
"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 Company.
"We are investing now in the infrastructure that will allow us to bring this innovative and cost-competitive fuel to our customers."
Shell announced last year that it plans to expand its sales of LNG in the marine and land transport sectors.
