Shell Puts Small-Scale Technology To Work At Elba Island

21 Aug 2013: While Cheniere’s Sabine Pass continues to garner headline after headline touting it as the first liquefaction project to export from the US Lower 48, Shell and Kinder Morgan are positioning themselves to possibly get across the finish line first at their Elba Island project in Georgia. The two energy companies are aiming for the 1.5 MMt/y first phase to be in commercial service by December 2015 and the second 1 MMt/y phase producing LNG the same time the following year. The ambitious timeline hinges on the project’s decision to sidestep the US Department of Energy’s non-free trade agreement license process, meaning all production would be sent to destinations that have trade agreements in place with the US. Shell will take all of the liquefaction capacity in the project, as well as a 49% equity stake, while the US pipeline giant will retain a controlling interest and operate the facility located outside of Savannah. Kinder Morgan inherited Elba Island after its acquisition of fellow midstream firm El Paso in 2012.