Phase II of Elba Island LNG Terminal to move forward

HOUSTON -- El Paso Pipeline Partners, L.P. has announced that Shell US Gas & Power LLC, a Royal Dutch Shell plc subsidiary, has given notice to Elba Liquefaction Company, L.L.C. 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, Ga. EPB’s Southern Liquefaction Company unit owns 51 percent of Elba Liquefaction Company.

Capacity to be added in Phase II will range from 70 MMcf/d (0.5 million tonnes per year) up to 140 MMcf/d (1.0 million tonnes per year). 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 2017-2018.

If the maximum volume for Phase II is elected, the Elba liquefaction project is expected to have total capacity of approximately 350 MMcf/d (2.5 million tonnes per year) of LNG.

“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.

The project was initially announced in early 2013 and will use Shell’s 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 (FERC) 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.

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