|LNG-powered Offshore Supply Vessels will support Shell's operations in the Gulf of Mexico. Courtesy: Harvey Gulf International Marine|
The units will form two new LNG transport corridors in the Great Lakes and Gulf Coast areas.
In the Gulf Coast area, Shell will install a small-scale liquefaction unit capable of producing up to 250,000 tonnes per year at the Geismar Chemicals facility in Louisiana.
The unit is expected to supply LNG along the Mississippi River, the Intra-Coastal waterway and to offshore Gulf of Mexico and onshore exploration areas in Texas and Louisiana.
Shell will expand its relationship with fuel re-seller Martin Energy Services to supply to oil and gas and other industrial customers in Texas and Louisiana.
It also will supply LNG to fuel marine vessels and provide what is expected to be the first LNG barging and bunkering operation in North America, through its agreement with Edison Chouest Offshore.
In the Great Lakes Corridor the Anglo Dutch oil major will build another unit capable of producing 250,000t of LNG at its Sarnia Manufacturing Centre in Ontario.
The project is expected to supply LNG fuel to all five Great Lakes, their bordering US states and Canadian provinces, and the St. Lawrence Seaway.
Shell said Interlake Steamship Company would likely be the first marine customer as it made the switch to LNG.
Subject to final approvals, Shell expects the units will be up and running in three years.