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Leveraging Shell’s Natural Gas Portfolio
As global natural gas demand continues to rise, Shell is well positioned to meet the demand. Shell’s natural gas monetization business focuses on ways to leverage Shell’s significant natural gas position in new and existing markets. We do this by applying new technologies and new business ideas for our onshore gas business.
In an effort to conserve natural resources and reduce flaring during exploratory drilling for onshore gas in North America, Shell is working with Prometheus Energy to pilot test their micro Liquefied Natural Gas (mLNG) production plant technology. The mLNG plant is integrated directly downstream from the well head.
Natural gas makes up a significant part of Shell’s North America resource base. While we continues to deliver natural gas to markets via existing pipeline networks, Shell is also evaluating other markets for its natural gas where the use of natural gas can increase supply diversity and reduce air pollution. Some of these markets/uses could include:
Gas to Power
Shell is actively advocating for the use of natural gas to replace other inefficient fuel sources that are used to make electricity at power plants. Natural gas use is the most efficient and economical fuel source for power production and it provides an opportunity to quickly reduce CO2 emissions in the shorter term. Greater reliance on gas in power generation will make the largest and most cost-effective contribution to meet our climate change goals.
When used to generate electricity in modern plants, even allowing for the full “well to wire” CO2 emissions, gas emits less than 50% - and up to 70% less when compared to older, inefficient coal plants. Coal also produces SOx, NOx and particulate emissions including substances such as mercury.
LNG (Liquid Natural Gas)
Shell is a leader in LNG globally. LNG is natural gas that when chilled to –260 degrees Fahrenheit, becomes a liquid and can be transported. In its liquid form, it can be shipped to global markets and used as a fuel for power production. The growth of US natural gas supplies, particularly as additional shale plays are being appraised, means that the US has about a 100-year supply. As a result, relatively little LNG in being imported into the US currently. The existing LNG import facilities are operating significantly below capacity and could continue to be underutilized for some time.
Gas for Transport
Shell believes that future transportation needs will be filled by a “mosaic” of solutions, including electrification and natural gas. In niche markets, Shell is looking at opportunities to facilitate the penetration of natural gas as LNG in the transportation sector, particularly in heavy-duty long haul fleets and large mining vehicles – where use of natural gas can reduce the CO2 footprint of these vehicles.
Micro-LNG
Shell is also pursuing the utilization of micro-LNG facilities to process natural gas for delivery to markets where pipeline networks do not exist. These small, transportable facilities are a fit-for-purpose solution which Shell expects will receive more widespread use.