HOUSTON, June 7, 2012 /PRNewswire/ -- Shell and its affiliates have signed a memorandum of understanding with TravelCenters of America LLC (TA) to sell liquefied natural gas (LNG) to heavy-duty road transport customers in the US through TA's existing nationwide network of full-service fueling centers.
Pending final agreements, the proposed plans include constructing more than 200 LNG fuel lanes at about 100 TA sites and Petro Stopping Centers throughout the US interstate highway system. If a final agreement is reached, the first of the LNG fuel lanes are expected to become operational in 2013.
"Using natural gas for transport gives truck fleet operators a new strong advantage because it's abundant and affordable and a viable alternative to diesel," said Elen Phillips, Vice President, Shell Fuels Sales & Marketing North America. "This potential alliance with TA would enable Shell to deliver LNG fuel to customers who want a competitively priced fuel option to help them meet increasingly stringent air quality emission standards."
Demand for innovative fuels, like LNG fuel, from heavy-duty road transport customers is growing due, in part, to the wide range of benefits for trucking fleet operators. These benefits can include lower fuel costs and improved local air quality from reduced emissions at the point of use, particularly nitrogen oxide as well as reduced noise levels.
"Shell sees great potential for LNG as a fuel option among our range of quality fuels, due to the sheer abundance and affordability of domestic natural gas in North America. Where it makes sense and where there is customer demand, we will innovate to deliver LNG as an additional fuel offer to our customers across America," concluded Phillips.
The agreement with TA, the largest full-service truck stop chain in the US, represents the next phase for Shell in its plan to provide trucking fleet customers in North America with a robust fueling infrastructure. Last year, Shell announced it would sell LNG to its heavy-duty fleet customers at select Flying J truck stops in Alberta, Canada beginning in 2012. The first LNG retail plaza in Calgary is expected to open this year. Both these announcements help demonstrate how Shell is moving forward in its strategy to develop a global downstream LNG fuel sales business for commercial customers in the truck sector but also other growth areas notably marine, mining and rail.
About Shell and LNG
Shell is a leader in upstream LNG supplying natural gas to customers in more countries than any other energy company. Currently, with our partners, we supply more than 30% of the world's LNG. In North America, we are expanding our large-scale LNG expertise, our global fuels technology leadership and safety record to the small-scale, transport sectors with fuel storage, handling and transport.
Shell already has a long safety track record in terms of the safe storage, handling and movement of LNG.
About Shell Oil Company
Shell Oil Company is an affiliate of the Royal Dutch Shell plc, a global group of energy and petrochemical companies with 93,000 employees in more than 90 countries. We deliver a diverse range of energy solutions and petrochemicals to customers worldwide. These include transporting and trading oil and gas, marketing natural gas, producing and selling fuel for ships and planes, generating electricity and providing energy efficiency advice.
We also produce and sell petrochemical building blocks to industrial customers globally, and we are investing in making renewable and lower-carbon energy sources competitive for large-scale use. In the U.S., we operate in 50 states and employ more than 20,000 people delivering energy in a responsible manner.
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 23% 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 contains 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'', ''goals'', ''intend'', ''may'', ''objectives'', ''outlook'', ''plan'', ''probably'', ''project'', ''risks'', ''seek'', ''should'', ''target'', ''will'' 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 included in this press release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves 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 regulatory measures addressing climate change; (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, 2011 (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, June 7, 2012. 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.
We may have used certain terms, such as resources, in this press release that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our 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 Oil Company