Shell US Gas & Power LLC and Southern Liquefaction Co. LLC, a Kinder Morgan company and unit of El Paso Pipeline Partners LP, will form a limited liability company to develop an LNG export plant in two phases at Southern LNG Co. LLC’s existing Elba Island LNG terminal near Savannah, Ga.
The total project will have about 2.5 million tonnes/year in liquefaction capacity. In June 2012, the Elba Island terminal received approval from the US Department of Energy to export as much as 4 million tpy of LNG to free trade agreement (FTA) countries. In August 2012, the terminal submitted a filing to DOE seeking approval to export as much as 4 million tpy of LNG to non-FTA countries.
Phase 1 of the project, about 1.5 million tpy, requires no additional DOE approval.
Shell and Kinder Morgan affiliates have agreed to modify EPB’s Elba Express Pipeline and Elba Island LNG terminal to move natural gas to the terminal and to load LNG onto carriers for export.
Upon reaching final agreement, EPB, through its affiliates, will own 51% of the entity and operate the liquefaction. Shell, through its affiliates, will own the remaining 49% and subscribe to 100% of the liquefaction capacity.
The project will use Shell’s small-scale liquefaction unit, which will be integrated with the existing Elba Island terminal.
