El Paso Seeks Elba LNG Expansion

El Paso Corporation says that Elba Express Company, L.L.C., (EEC), a subsidiary of Southern Natural Gas Company (SNG), has filed its application with the Federal Energy Regulatory Commission (FERC) to construct the Elba Express Pipeline; and Southern LNG, a subsidiary of SNG has filed its application to expand the Elba Island liquefied natural gas (LNG) receiving terminal near Savannah, GA. The projects will be constructed in phases with the in-service date of the first phase of each expected to be in 2010 and the second phase of each expected to be in 2012. The total expected capital cost for all phases of both projects is approximately $930 million.

The proposed pipeline will transport natural gas from the company's Elba Island liquefied natural gas terminal near Savannah, Georgia, to markets in Georgia and South Carolina, and, by way of its interconnects, Elba Express will also supply natural gas to markets throughout the southeastern and eastern United States. The approximately 190-mile, 42-inch and 36-inch diameter pipeline will have a total capacity of approximately 1.2 billion cubic feet per day (Bcf/d) with an initial in-service date of mid-2010. The LNG terminal expansion project will add 8.4 billion cubic feet (Bcf) of LNG storage, which will more than double Elba's capacity to 15.7 Bcf. The expansion will also add .9 Bcf/d of send-out capacity, raising Elba's capacity to 2.1 Bcf/d.