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Shell, Kinder Morgan Plan New LNG Export Facility in Savannah

Shell US Gas & Power and Kinder Morgan's Southern Liquefaction Company said they will form a limited liability company to develop a natural gas liquefaction plant in two phases at Southern LNG Company's existing Elba Island LNG Terminal near Savannah,…

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Ga. They said they also agreed to modify Kinder Morgan's El Paso Pipeline Partners's (EPB) Elba Express Pipeline and Elba Island LNG Terminal to physically transport natural gas to the terminal and to load the LNG onto ships for export. EPB will own 51 percent of the entity and operate the facility. Shell will own the remaining 49 percent and subscribe to 100 percent of the liquefaction capacity, they said. The project is expected to have liquefaction capacity of about 2.5 million tons per year (mtpa) of LNG. In June 2012, the Elba Island terminal received approval from the U.S. Department of Energy to export up to 4 mtpa of LNG to Free Trade Agreement (FTA) countries. In August 2012, the terminal submitted a filing to the DOE seeking approval to export up to 4 mtpa) of LNG to non-FTA countries. Phase I of the project, about 1.5 mtpa (210 Mmcfd), requires no additional DOE approval, they said.