Shell US Gas & Power, a subsidiary of Royal Dutch Shell, and Southern Liquefaction Company, a Kinder Morgan affiliate and unit of El Paso Pipeline Partners (EPB), have announced that they plan to form a limited liability company in order to develop a natural gas liquefaction plant in two phases at Southern LNG Company in existing Elba Island LNG Terminal, near Savannah, Georgia, US.
It is expected that the new natural gas plant will have a liquefaction capacity of about 2.5 million tonnes per year of LNG or 350 million cubic ft of gas per day.
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As part of the deal, Shell and Kinder Morgan affiliates will alter EPB’s Elba Express Pipeline and Elba Island LNG Terminal to physically transport natural gas to the terminal, as well as to load the liquefied natural gas (LNG) onto ships for export.
Kinder Morgan chairman and CEO Richard D. Kinder said the project has received Free Trade Agreement approval.
"This project will facilitate further development of the abundant natural gas resources in the United States and will be a positive factor in the overall balance of trade between the US and other countries," added Kinder.
Shell Oil president Marvin Odum said the abundance of natural gas in the US will have a major impact on the energy landscape.
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By GlobalDataEPB and its affiliates will have a 51% interest in the facility and become the operators once the project is finalised, while Shell will hold a 49% interest stake through its affiliates and subscribe to 100% liquefication capacity.
The project intends to use the Shell’s small-scale liquefaction unit by integrating it with the existing Elba Island facility, which will allow for rapid construction compared to traditional large-scale plants.
The project will also allow Shell to expand its energy mix activities, which include extracting ethane and other natural gas liquids for petrochemicals production, shipping solutions for LNG and proprietary gas-to-liquids technology to produce fuels, lubricants and chemicals.
Image: The new natural gas plant will have a liquefaction capacity of about 2.5 million tonnes per year of LNG.Photo: Courtesy of Mick Garratt.
