El Paso Pipeline Partners reported Shell US Gas & Power, a Royal Dutch Shell subsidiary, has given notice to Elba Liquefaction Company to move forward on Phase II of the jointly-owned natural gas liquefaction project at Southern LNG Company’s Elba Island LNG Terminal, near Savannah, Georgia
“We are pleased that this liquefaction project, which will cost approximately $1.5 billion at full development, continues to advance,” said Kimberly S. Watson, President, Natural Gas Pipelines East Region for Kinder Morgan. “This project will further enhance what has become an abundant natural gas resource in the United States and will result in development of new international markets without straining the availability or cost of natural gas supply to U.S. markets. Moreover, the Elba Liquefaction Project will be a positive factor in the overall balance of trade between the U.S. and other countries, as well as generate local and state benefits.”
Capacity to be added in Phase II will range from 70 million cubic feet per day up to 140 MMcf/d. The estimated capital expenditure of Phase II at the maximum volume of 140 MMcf/d is approximately $500 million. Phase I of the project, consisting of six liquefaction units, will provide approximately 210 MMcf/d of export capacity. It is anticipated to be in service in late 2016 or early 2017. Phase II, covering two additional liquefaction units, has an expected in-service in 2017 or 2018. If the maximum volume for Phase II is elected, the Elba liquefaction project is expected to have total capacity of approximately 350 MMcf/d of LNG. EPB’s Southern Liquefaction Company unit owns 51 percent of Elba Liquefaction Company.
The project will use Shell’s innovative small-scale liquefaction units, which will be integrated with the existing Elba Island facility and enable rapid construction compared to traditional large-scale plants.
The project is currently in the Federal Energy Regulatory Commission review process, which is conducted in accordance with the National Environmental Policy Act. Site construction will begin after FERC issues an Authorization to Proceed and Construct.
El Paso Pipeline Partners is a publicly traded pipeline limited partnership. It owns an interest in or operates more than 13,000 miles of interstate natural gas transportation pipelines in the Rockies and the Southeast, natural gas storage facilities with a capacity of nearly 100 billion cubic feet and LNG assets in Georgia.