Shell and Kinder Morgan to Export LNG From the U.S.


Royal Dutch Shell announced plans today for a partnership between one of its subsidiaries and Southern Liquefaction Co. -- a Kinder Morgan company and unit of El Paso Pipeline Partners -- to develop an export-ready natural gas liquefaction plant at a shipping terminal near Savannah, Ga..

Using El Paso's existing pipeline and terminal infrastructure, the newly created limited liability company will further develop a facility to allow for liquefied natural gas export via ships. Kinder Morgan-owned El Paso will operate the facility and own 51% of the new company, while Shell will snag 49% and 100% of the liquefaction capacity.

"This announcement underscores how the abundance of natural gas in the U.S. is changing the energy landscape," said Shell President Marvin Odum in a statement. "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 U.S. economy."

Once completed, the project is expected to have liquefaction capacity equivalent to 2.5 million tonnes per year or 350 million cubic feet of gas per day.

According to Kinder Morgan Chairman and CEO Richard Kinder, the project has already received Free Trade Agreement approval and expects non-Free Trade Agreement approval "in due course."


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