Natural gas is a major source of energy and provides a cleaner alternative for power generation compared to other hydrocarbons like coal. In our global Integrated Gas business, we focus on liquefying natural gas (LNG) so that it can be safely stored and shipped to markets around the world.
What is LNG and how can we use it?
LNG is a clear, colourless and non-toxic liquid which forms when natural gas is cooled to -162ºC (-260ºF). The cooling process shrinks the volume of the gas 600 times, making it easier and safer to store and ship. In its liquid state, LNG will not ignite.
When LNG reaches its destination, it is turned back into a gas at regasification plants. It is then piped to homes, businesses and industries where it is burnt for heat or to generate electricity. LNG is now also emerging as a cost-competitive and cleaner fuel, especially for shipping heavy-duty road transport.
Shell and LNG
Shell has been a pioneer in LNG for more than 50 years. We provided the technology for the world's first commercial LNG plant in Arzew, Algeria in 1964, and we shipped its first commercial cargo to the UK in the same year, starting today’s global trade.
In Canada, Shell, KOGAS, Mitsubishi and PetroChina are working together to design, build and operate the proposed LNG Canada project, located near Kitimat, B.C. in the traditional territory of the Haisla First Nation. Final investment decision is expected in late 2016.
On February 15, 2016, BG Group became a part of Royal Dutch Shell. The combined portfolio includes a proposed an LNG export facility on Ridley Island near Prince Rupert, British Columbia.
Shell LNG is also a cost-competitive fuel solution for heavy duty transport trucks that could help reduce both operational costs and emissions.
Our North American onshore natural gas portfolio uses advances in technology to tap rich resources of previously inaccessible "tight" gas.