Shell 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. El Paso’s Southern Liquefaction Company unit owns 51% of Elba Liquefaction Company. Capacity to be added in Phase II will range from 70 mcf/d (0.5 Mt/year) up to 140 mcf/d (1 Mt/year). The estimated capital expenditure of Phase II at the maximum volume of 140 mcf/d is approximately US$500m.
Phase I of the project, consisting of six liquefaction units, will provide approximately 210 mcf/d (1.5 Mt/year) 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 mcf/d (2.5 Mt/year) of LNG. 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.