Shell plans to build natgas liquefaction units in US, Canada

05 March 2013 14:26  [Source: ICIS news]

HOUSTON (ICIS)--Shell plans to build two 250,000 tonne/year natural gas liquefaction units - one at its chemicals site in Geismar, Louisiana, and the other at the Sarnia petrochemicals hub in Ontario, Canada, it said on Tuesday.

The plants would form the basis of new liquefied natural gas (LNG) transport corridors in the Great Lakes and US Gulf Coast regions, Shell said. They will supply LNG as a transport fuel to marine and heavy-duty on-road customers in North America.

The units could be in production in about three years, subject to final regulatory permitting. Financial details were not disclosed.

The Geismar plant will supply LNG fuel to customers 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. Martin Midstream Partners will provide terminalling, storage, transportation and distribution of LNG, Shell said.

The Sarnia plant will supply LNG fuel to all five Great Lakes, their bordering US states and Canadian provinces, and the St. Lawrence Seaway, Shell said.

“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,” Odum added.

In January, Shell had announced plans to export LNG from a terminal in Savannah, Georgia. 

By: Stefan Baumgarten
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