El Paso Gets FERC Nod for Elba Expansion

El Paso says that its subsidiaries, Southern LNG, Inc. and Elba Express Company, L.L.C., have received approval from the Federal Energy Regulatory Commission for two significant projects -- expansion of the Elba Island LNG receiving terminal near Savannah, Georgia, and construction of the new Elba Express Pipeline in eastern Georgia, respectively.

"We continue to focus on developing critical infrastructure necessary to meet the needs of consumers," said Norman Holmes, senior vice president and chief commercial officer for both Southern LNG and Elba Express. "The terminal expansion, Elba Express Pipeline, and the recently completed Cypress Pipeline by another El Paso subsidiary, Southern Natural Gas Company, represent $1.3 billion of projects which provide a significant new source of natural gas to the growing Southeastern markets and beyond."

The expansion of the Elba Island LNG terminal will more than double its storage capacity to 15.7 billion cubic feet (Bcf) and increase the facility's send-out capacity to 2.1 Bcf per day (Bcf/d). Elba Express Pipeline, an approximately 190-mile pipeline with a total capacity of 1.2 Bcf/d, will transport natural gas supplies from the Elba Island LNG terminal to markets in the Southeastern and Eastern United States. The Elba terminal expansion and the Elba Express pipeline projects are fully supported by firm capacity commitments from BG LNG Services, LLC. and Shell NA LNG LLC. The facilities will be constructed in two phases with the initial in-service date expected to be mid-2010.