Parkland, Shell Canada Ink LNG Fuel Distribution Deal

Parkland Fuel Corporation announced its branded distribution agreement for LNG with Shell Canada.

The agreement will allow Parkland to deliver Shell LNG to commercial and industrial customers for use in various high horsepower markets including oil & gas exploration, well stimulation applications and off-grid power generation.

“The emergence of engine technologies that harness the advantages of natural gas as a fuel has created an opportunity within the commercial fuel marketplace,” said Bob Espey, President and Chief Executive Officer of Parkland. “Both the economic and environmental benefits of natural gas are expected to drive adoption of LNG, which could partially displace diesel consumption for some commercial applications. In addition to fuels, lubricants, and propane, LNG will further enhance our multi-product offering to the commercial fuel segment and position us to serve this emerging market.”

The agreement, which is extendible to ten years, will allow Parkland to be active in the Canadian LNG market. Parkland will distribute LNG from Shell’s Jumping Pound liquefaction, storage, and loading facility in southern Alberta to customers across Western Canada.

“Liquefied natural gas presents a tremendous opportunity for commercial and industrial customers looking for fuel alternatives,” said Bob Taylor, Business Development Manager, Shell LNG. “Working with Parkland will allow us to indirectly supply commercial customers through Parkland’s established commercial sales network.”

In addition to its competitive cost, LNG use in heavy-duty applications may deliver a reduction in carbon dioxide emissions while also reducing emissions of particulate matter, nitrogen dioxide and sulfur dioxide.

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LNG World News Staff, May 14, 2013; Image: Shell Canada