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Shell has been at the forefront of the natural gas industry for more than 40 years. From exploration and production of natural gas to processing and transport to markets, we finance and deliver some of the largest and most complex gas projects in the world. In the U.S. Shell Gas & Power is a leader in the expansion of the Liquefied natural gas (LNG) business.
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Liquefied natural gas (LNG)
Gas to liquids
Coal gasification
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 LNG is created by cooling natural gas to below -162°C, at which temperature it becomes a liquid. It takes up just 1/600th of the volume it does as a gas, making it easy, safe and cost-efficient to transport to the market where it is regasified. U.S. imports of this clean-burning fuel are expected to grow significantly in the next decade. Creating access to the North American natural gas market is key for Shell’s global LNG strategy. Emphasis is being put on development of the infrastructure to bring LNG to this market. Shell has a current capacity of 250 MMcf/d at the Cove Point regasification terminal on Chesapeake Bay in Maryland, which will increase to approximately 333 MMscf/d when the phase II expansion of that terminal is completed. We also have a current capacity of 360 MMcf/d at the Elba Island LNG regasification terminal in Georgia and have acquired an additional 585 MMcf/d of capacity at Elba Island in connection with an expansion of the terminal that is projected to be completed in early 2010. Furthermore, Shell is participating in a joint venture to develop a floating LNG regasification terminal in Long Island Sound, New York and is involved in two LNG ventures to meet demands for natural gas in neighboring Mexico. The Altamira project in northeastern Mexico became operational in late 2006, and the Costa Azul project is currently under construction on the country’s western coast and is projected to be completed in 2008.
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We are using traditional fossil fuels in new ways that increase supply diversity and reduce pollution. Gas to Liquids (GTL) technology, which uses natural gasto make transport fuels, is a prime example. As a synthetic fuel made from natural gas, GTL gasoil can be used in diesel vehicles. Compared to conventional diesel fuel, it significantly reduces the vehicle emissions that impact air quality, thus bringing particular benefits to urban areas. Shell has been at the forefront of GTL technology and production for over 30 years.
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Coal is readily available in the U.S., and coal gasification and coal-to-liquids initiatives can be reliable, competitive and environmentally sound energy sources. The Shell clean coal technologies and coal gasification process (SCGP) can be integrated with other technologies in the manufacture of chemicals and hydrogen production; and when used in an Integrated Gas Combined Cycle (IGCG) power plant, produce several times less carbon dioxide in syngas than rival technologies and 15% less carbon dioxide emissions than conventional coal-fired power plants. The integration of SCGP in an IGCC power plant combines efficiency and environmental performance with operability and cost effectiveness.
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