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The general manager for Shell's downstream liquefied natural gas (LNG) business says the company envisions that lower-carbon natural gas will become a more important part of the global energy mix in the years ahead.

Speaking during a question and answer session for last week's CWC LNG Fuels Summit, Lauran Wetemans, responsible for downstream LNG business at Shell Downstream Services International, said: "LNG is emerging as a cost-competitive and cleaner burning fuel versus heavy fuel oil and diesel for shipping, heavy-duty road transport, and industrial applications. In the future, we expect it also be used for rail and mining."

He also believes that LNG is an economical - and therefore commercially viable - fuel for the future.

"On a long term basis we believe LNG offers operating cost benefits to many types of vessels compared to existing fuel options. Demand for LNG as a fuel in the shipping industry is increasing, in part due to emissions reduction requirements which came into force in January 2015.

"Marine customers are facing increasing regulations on sulphur and nitrogen oxide emissions as part of the Emission Control Areas, located in North America and the North Sea/Baltic region.

"LNG can help the industry comply with current and future regulations as it can reduce sulphur emissions, particulates and nitrogen oxides, and can help reduce well-to-wheel greenhouse gas emissions versus heavy fuel oil," he said.

Wetemens acknowledged that the successful development of LNG as a fuel option will depend on creating a good business case in order to attract investment. He explained that other factors to take into consideration are having the correct regulatory framework to encourage growth, as well as a solid infrastructure.

"The key to unlock the demand is bringing together all the parties that can make this transition happen in order to de-risk the investment and coordinate the activities. We actively participate in various collaborative partnerships with the aim to grow the LNG fuel demand," remarked Wetemans.

Commenting on the company's role in Rotterdam, he said: "Shell decided to be the first customer of a new, dedicated LNG for transport infrastructure at the Gas Access To Europe (GATE) terminal at the Port of Rotterdam in the Netherlands. This has enabled investment in the terminal expansion for break-bulk loading services. For road customers, the existing truck-loading station at the Gate terminal is being used to distribute LNG fuel to an initial Shell network of LNG truck refuelling stations in the Netherlands."

On the subject of Emissions Control Areas, Wetemans believes that as LNG is almost totally free from both sulphur and particulates, it can help meet both North American and European environmental regulations.

Lauran Wetemans has been with Shell since 1995, during which time he has held varied commercial positions, working in The Netherlands, Brazil and the U.K. He has held the positions of M&A Portfolio Manager in Latin America and was Shell's Retail Activities Network Manager, also in Latin America.