Shell buys liquid natural gas firm

Royal Dutch Shell is splashing out 74 million dollars to buy up the remaining shares of Norwegian liquid natural gas (LNG) supplier Gasnor it does not already own.

Shell currently has 4.1% of the stock but has signed a share purchase agreement which should see it take ownership of the rest by the third quarter.

The company said the deal was an important step towards creating an LNG sales business, and would offer a reliable new addition to Shell's commercial customers' fuel mix.

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Gasnor supplies LNG to industrial and marine customers, with three small scale production plants and distribution assets including two tanker ships, a fleet of trucks and a network of terminals.

Colin Abraham, Shell's Vice President for Downstream LNG, said the benefits of natural gas in meeting future energy needs were well-documented.

"Shell believes the Liquefied Natural Gas (LNG) in transport sector will develop into a sizeable market and given its industry leading expertise across the LNG value chain, the extension into this market is a good fit for Shell," he said.

"The Gasnor acquisition provides Shell with invaluable customer and market insight built up over a number of years."