When Royal Dutch Shell plc (ADR) (NYSE:RDS.A) announced on Monday its new liquefaction plants, it also announced that these would be the basis for two new natural gas refueling networks. The first would be in the Gulf Coast Corridor (Texas and Louisiana) with the liquefaction unit at its facility in Geismar, Louisiana with distribution provided by a subsidiary of Martin Midstream Partners L.P. (NASDAQ:MMLP).
The second network would be in the Great Lakes Corridor with the liquefaction unit at its facility in Sarnia, Ontario, Canada. This facility will provide LNG to all five Great Lakes as well all the bordering U.S. states and Canadian provinces.
Once these networks are complete we should see more and more truckers begin using LNG for fuel, hopefully starting a virtuous cycle of refueling stations deciding on their own to add LNG and CNG refueling options.
The article U.S. LNG Supply for Natural Gas Vehicles Set to Double originally appeared on Fool.com and is written by Dan Dzombak.
Dan Dzombak can be found on Twitter @DanDzombak or on his Facebook page, DanDzombak. He owns shares of Chesapeake Energy. The Motley Fool recommends Clean Energy Fuels, and has the following options on Chesapeake Energy: long Jan. 2014 $20 calls, long Jan. 2014 $30 calls, and short Jan. 2014 $15 puts.
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