Diesel Progress North American

STREETSMARTS

STEVE STURGESS
steve@stevesturgess.com

Shell Bullish On LNG
STREET SMARTS IS A MONTHLY COLUMN DEVOTED
TO THE ON-HIGHWAY TRUCK MARKETS.
STEVE STURGESS IS AN INDEPENDENT TRUCKING
WRITER AND CONSULTANT BASED IN
CAPISTRANO BEACH, CALIF. HIS BLOG IS AT
WWW.STEVESTURGESS.COM.

This year, Shell will produce more natural gas than oil for the first time in the 50 years it has been involved in natural gas production.

This astonishing fact underscores Shell’s commitment to alternative fuels, especially natural gas as compressed (CNG) or as a liquid at -256°F (LNG). To emphasize this commitment, Shell has embarked on an adventurous program that will see a natural gas infrastructure developing over the next five to 10 years, said James Burns, Shell’s LNG manager in the United States.

Burns said that later this year, Shell will open the first LNG corridor in the NAFTA region, with LNG fueling stations in Calgary and Edmonton and a refueling midway point in Red Deer, Alberta.

This is no demonstration project, said Burns, but a fully fledged alternative fuel option for fleets servicing the busiest cities in the western Canadian province.

Shell is looking to LNG as its fuel of the future — at least to 2050 — for the commercial transportation sector in North America because of its greater energy density compared with CNG. That is important, said Burns, to get the range needed for medium and heavy trucks. He also sees the truck transportation infrastructure as more easily deployed since fueling points can be set up at strategic north-south and east-west corridors at truck-traffic nodes around the nation on the interstate system.

Shell has opted for LNG and the com-
pany is dedicated to assist fleets in the
rollout of the fuel. Where there are those
who want to make the switch, Shell will
be putting in suitable fueling points if none
presently exist to satisfy this demand.

lower cost for the fuel — or more judging from diesel price gyrations of recent months — over-the-road trucking firms that do 100,000 miles a year can see a three-year return on investment. And that could come down as more of the expensive tanks are constructed to satisfy a growing volume of LNG over-the-road trucks.

So far the engines of choice appear to be the ISX-based Cummins Westport, which uses pilot ignition by diesel fuel with gas injected into the combustion chamber for the power stroke or the Cummins ISL G, which is spark-ignited. These engines are available in Freightliner, Kenworth and Peterbilt highway trucks and Autocar refuse vehicles. Navistar said it is committed to developing a range of natural gas MaxxForce engines for medium- and heavy-duty buses and trucks.

The pressure to use natural gas is driven partly by economics, partly by environmental concerns and partly by energy-independence issues. Burns said the Cummins ISL G actually produced 20% less CO2 than diesel in the same base engine, using the Canadian GHGenius model. It also has virtually no sulfur for even less environmental impact and is virtually free of engine deposits for a longer engine life.

As for energy independence, Burns said natural gas is abundant, acceptable and affordable. Technology changes have meant the recovery of more natural gas from shale. In the last five years the United States has gone from an importer with 40 terminals around the country to provide the import capacity to being a net exporter of natural gas. U.S. gas reserves have increased 22% (2006 to 2009), he said, and there’s more to come.

For sure, it’s astonishing that Shell will produce more natural gas than regular oil-based fuels this year. But if the crystal ball of the appropriately named Mr. Burns is telling the truth, heavy road transport could see a wholesale shift to the fuel within 10 years. That’s astounding. dp