Shell Investments To Progress LNG For Transport - LNG availability for heavy-duty fleet vehicles in Canada

- Key Partnerships in Transport Sectors

- Powering the marine, trucking, rail and mining industries with LNG

HOUSTON, Sept. 7, 2011 /PRNewswire/ -- Shell today announced that it plans to have Liquefied Natural Gas (LNG) available for heavy-duty fleet customers beginning in 2012 at select Shell Flying J truck stops in Alberta, Canada.

Shell is pursuing engineering and regulatory permits to produce LNG by 2013 at its Jumping Pound gas processing facility in the foothills of Alberta, Canada.  Pending regulatory approval, it will be the first investment of its kind for Shell globally and will include production facilities and downstream infrastructure.  Until then, LNG will be supplied to the Shell Flying J truck stops from third-party supply agreements.

"With an abundance of natural gas and a growing need for low-emission transportation fuels, today signals a very important step for a significant North American resource," said Marvin Odum, president, Shell Oil Company. "Our strong portfolio and worldwide LNG leadership puts us in a unique position to grow LNG in key markets.  And, to meet growing demand, natural gas for larger fleet vehicles delivers reduced emissions and offers a cost-competitive alternative to other fuels."

"As global demand for transportation fuels increases, including for LNG, Shell is well positioned to meet this demand. LNG can provide great advantages for our commercial customers as a future energy solution in transportation.  LNG will be a welcome addition to Shell's portfolio of quality transportation fuels," said Odum.  

Powering Progress Together

Shell is also actively developing new business opportunities with Original Equipment Manufacturers (OEMs) to substitute LNG for diesel and propane in a number of industrial sectors such marine, on-road trucking, rail, mining and oil and gas drilling applications.  Some of these include:

  • As part of its efforts to expand the use of LNG as a fuel beyond the heavy duty road transport sector, Shell also today announced a Joint Cooperation Agreement with Wartsila North America to further improve the environmental footprint of the US marine industry, as well as other sectors, by accelerating the deployment of larger engines which use LNG as a fuel. To a broad range of Wartsila natural gas powered vessel operators and other customers, Shell will provide the low-cost and low emissions LNG fuel.  Under this agreement, the partners will focus first on the US Gulf Coast, and then expand their efforts.

  • An agreement with Westport Innovations Inc. (Westport) to launch a co-marketing program in North America aimed at providing customers a better economic case when purchasing and operating liquefied natural gas-powered vehicles by consolidating key value chain components such as fuel supply, customer support and comprehensive maintenance into a single customer-friendly package.

  • A Cooperation Agreement with GE's transportation division to jointly develop a total solution for railroad including associated infrastructure and a locomotive capable of running on both diesel and LNG. This presents a practical alternative fuel source and delivers the benefits of a secure, low-cost and low-emissions fuel for the rail industry.

  • Additionally, in the mining sector, Shell is actively developing energy solutions which utilize liquefied natural gas (LNG) fuel for the North American mining industry. These solutions will bring fuel cost reductions and emissions improvements to the sector through focused applications in the form of mobile mine haul fleets and other stationary applications. Shell is currently collaborating with technical partners to develop LNG infrastructure solutions for the mining customers.

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this press release "Shell", "Shell group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ''Subsidiaries'', "Shell subsidiaries" and "Shell companies" as used in this press release refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as "associated companies" or "associates" and companies in which Shell has joint control are referred to as "jointly controlled entities". In this press release, associates and jointly controlled entities are also referred to as "equity-accounted investments". The term "Shell interest" is used for convenience to indicate the direct and/or indirect (for example, through our 34% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This press release may contain forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'', ''intend'', ''may'', ''plan'', ''objectives'', ''outlook'', ''probably'', ''project'', ''will'', ''seek'', ''target'', ''risks'', ''goals'', ''should'' and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements that may be included in this press release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Group's products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell's 20-F for the year ended December 31, 2008 (available at www.shell.com/investor and www.sec.gov).  These factors also should be considered by the reader.  Each forward-looking statement speaks only as of the date of this press release, September 7, 2011. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this press release.

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions.  We use certain terms in this press release that SEC's guidelines strictly prohibit us from including in filings with the SEC.  U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.

SOURCE Shell



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