Shell Canada & Caterpillar sign agreement exploring LNG fuelling options for mining trucks

LNG in heavy hauler trucks could reduce costs and emissions at oil sands mines

CALGARY, Dec. 16, 2013 /CNW/ - Shell Canada and Caterpillar have signed an agreement to test a new engine and fuel mix using liquefied natural gas (LNG) that could reduce operating costs and lead to reduced emissions from oil sands mining in northern Alberta.

Caterpillar will leverage its experience with LNG in other applications, and will continue development work to design and build a fully integrated mining truck where LNG displaces most of the diesel power - also known as dual fuel. Through this agreement, Caterpillar will test the design at Shell's oil sands operations located near Fort McMurray.

In addition to the new truck Caterpillar is developing, Shell will also retrofit existing trucks from its fleet with the new engine for the trial, as well as provide fuelling infrastructure, at its Shell Albian Sands operation near Fort McMurray. This trial follows a trend for Shell in looking at options to use Canada's abundant natural gas as a fuel in marine and road transportation, and other industrial situations.

"To succeed commercially in the future, we believe we have to be able to compete both economically and environmentally. We believe that is what Canadians want," said Shell's VP, Oil Sands, John Rhind. "With heavy hauling being such a core part of our operation, success with this could make a real difference in our operations costs and emissions."

"We are excited to collaborate with Shell on this latest initiative to power Cat® mining trucks with Caterpillar's LNG technology. Many of our customers are asking for natural-gas powered equipment in order to reap the financial and environmental benefits. This agreement further builds upon our efforts in delivering cost effective, reliable and innovative solutions to our customers," said Chris Curfman, Caterpillar Vice President with responsibility for Mining Sales & Support Division.

Field testing of dual fuel powered mining trucks at Shell's oil sands operations is expected to begin in 2016, with the trial expected to last up to one year.

Shell has long been at the forefront of transport fuel innovation. Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

Notes to Editors:

Shell Canada operates Muskeg River and Jackpine Mines, and the Scotford Upgrader, on behalf of the Athabasca Oil Sands Project (AOSP), a joint venture between Shell Canada Energy (operator and 60% owner), Chevron Canada Limited (20%) and Marathon Oil Canada Corporation (20%).

Caterpillar manufactures mining trucks, including those used in oil sands operations for hauling material. The company's natural gas powered product line-up currently includes gas turbines and spark-ignited engines for the electric power and gas compression markets, as well as a dual fuel engine option for the petroleum market. The development and design of a fully integrated, dual fuel mining truck represents a significant step in this space.

For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2012 sales and revenues of $65.875 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services and Progress Rail Services. More information is available at: http://www.caterpillar.com.

LNG is natural gas chilled to -162 degrees Celsius. It has been safely produced and used in heating and power generation for decades. Using LNG to power mining trucks could mean lower costs and reduced greenhouse gas emissions compared to mining trucks powered by diesel fuel only.

Royal Dutch Shell plc
Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 90 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit www.shell.com.

Shell Canada Ltd
Shell has been operating in Canada since 1911 and employs approximately 8,000 people across the country. A leading manufacturer, distributor and marketer of refined petroleum products, Shell produces natural gas, natural gas liquids and bitumen, and is Canada's largest producer of sulphur. Shell is one of Canada's oil sands developers and operates the Athabasca Oil Sands Project on behalf of the joint venture partners.

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SOURCE: Shell Canada Limited