Jan 28 Royal Dutch Shell Plc said it
will tie up with Kinder Morgan Inc to export liquefied
natural gas (LNG) from a terminal near Savannah, Georgia.
El Paso Pipeline Partners LP, a Kinder Morgan unit,
and Shell will form a limited liability company to develop a
natural gas liquefaction plant at Southern LNG Co LLC's existing
Recent drilling innovations have unlocked vast shale oil and
gas reserves, placing the United States in a position to be a
major exporter. A number of companies, including Exxon Mobil
Corp, have lined up to get permission to sell the
country's cheap abundant natural gas overseas, where it can
fetch much higher prices.
The Energy Department's authorization is needed to export
natural gas to all but a handful of countries with free trade
The Elba Island LNG Terminal near Savannah received U.S.
Department of Energy approval in June to export up to 4 million
tonnes per year (mtpa) of LNG to countries that have free trade
agreements with the United States.
"This announcement underscores how the abundance of natural
gas in the United States is changing the energy landscape,"
Shell President Marvin Odum said in a statement.
The project, once completed, is expected to have a
liquefaction capacity of about 2.5 mtpa of LNG or 350 million
cubic feet of gas per day.
El Paso Pipeline, through its affiliates, will own 51
percent of the entity and operate the facility, while Shell will
own the rest.