“It’s better to do it right the first time,” says Shell analyst Jason Tolliver, who explained why, despite all the hullaballoo and hubbub, the energy giant is taking its time in alternative fuels.
“We don’t want to have a knee jerk reaction,” he says.
Tolliver and other Shell executives explained Shell’s venture into LNG fueling for trucks, announced last year in collaboration with Shell Flying J truck stops in western Canada, with partners including Westport Innovations (NASDAQ:WPRT).
Shell – an ACT Expo Platinum Sponsor – is looking to do a similar demonstration in the U.S.
Shell pledged to build a new LNG plant at its Jumping Pound gas processing facility in Alberta for 2013, and said it would supply the cryogenic fuel, beginning next year from third-party sources, at select Shell Flying J truck stops in Alberta (F&F, September 12).
Shell’s LNG commitment “signals a very important step for a significant North American resource,” Shell Oil president Marvin Odum said in a release.
A Destination Solution
“As a result of this initiative, we believe the use of natural gas as a fuel for transportation will accelerate,” said Westport CEO David Demers. “The North American launch is an important first step with Shell and we look forward to the continued proliferation of our advanced technology products and integration services.”
Westport said it will collaborate with Shell to develop industry standards for LNG as a new transportation fuel. Shell LNG and gas monetization VP José-Alberto Lima termed LNG a destination solution in the transportation fuels space.
Shell Flying J is a joint venture that pre-dated Flying J’s merger with Pilot. It operates seven travel centers in Canada.
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