Shell/Kinder Morgan in 2.5 tonne/year US LNG project

28 January 2013 15:59  [Source: ICIS news]

LONDON (ICIS)--Shell and North American midstream company Kinder Morgan plan to export about 2.5m tonnes/year of liquefied natural gas (LNG) from the Elba Island terminal near Savannah, Georgia in the US, the energy companies said on Monday.

The exports will be made from a modified existing terminal.

The Elba Island terminal has received approval to export 4m tonnes tonnes/year of LNG to Free Trade Agreement (FTA) countries and in August last year filed for approval for the export of a further 4m tonnes/year to non-FTA countries, they said.

This project will be completed in two phases using a Shell small-scale liquefaction unit integrated with existing facilities.

“This announcement underscores how the abundance of natural gas in the US is changing the energy landscape,” Shell Oil Company president Marvin Odum said. “With a measured, phased approach, exports of cleaner burning natural gas can help meet the world’s rising energy needs while also giving a boost to the US economy.”

“Shell has an array of long-term options for natural gas that will broaden the energy mix,” the company said.

“This includes 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.”

Some US chemical companies are strongly opposed to LNG exports, concerned about the long-term impact on natural gas prices.

On 24 January, Dow Chemical called a recently released US LNG exports study “fundamentally flawed” and “inadequate for assessing the macroeconomic impacts”.

The study suggested that US natural gas prices would not rise to oil parity or to levels in LNG consuming regions even if LNG exports were not limited.


By: Nigel Davis
+44 20 8652 3214



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