El Paso Starts Service From Elba II Expansion

El Paso has started service from its recently completed Elba II expansion project, a significant expansion of its Elba Island liquefied natural gas (LNG) receiving terminal near Savannah, Georgia.

The approximately $157 million Elba II Expansion adds 3.3 billion cubic feet (Bcf) equivalent of storage capacity and 540 million cubic feet per day (MMcf/d) of peak send-out capacity to the existing facility, increasing the terminal's total storage capacity to 7.3 Bcf and total peak send-out capacity to over 1.2 Bcf/d. The expansion also includes new docking facilities that can accommodate two LNG vessels at once in a newly constructed slip at Elba Island, effectively harboring LNG vessels during cargo unloading and providing more flexible passage for commercial shipping in the Port of Savannah.

All of the capacity at the Elba Island facility is contracted under long- term agreements, with the pre-expansion capacity contracted to BG LNG Services and the Elba II Expansion capacity contracted to Shell NA LNG LLC.

"The Elba II Expansion nearly doubles Elba's size. Construction on the project started in 2003, and it's being placed in service on time and on budget," said Jim Yardley, president of El Paso's Southern Pipeline Group. "And we've already begun the regulatory process on our Elba III Expansion that will once again double Elba's size with incremental service beginning in 2010. These terminal expansions, combined with our new Cypress and Elba Express pipeline takeaway projects -- to be in-service in 2007 and 2010 respectively -- provide access to large, diverse supplies of natural gas for all of Georgia and the Southeastern United States."

El Paso's total capital cost for the two Elba terminal expansions and new takeaway pipelines is expected to be nearly $1.3 billion.