Shell and Kinder Morgan to Export LNG From the U.S.
Jan 28th 2013 11:51AM
Updated Jan 28th 2013 1:05PM
Royal Dutch Shell announced plans today for a partnership between one of its subsidiaries and Southern Liquefaction Co. -- a Kinder Morgan company and unit of El Paso Pipeline Partners -- to develop an export-ready natural gas liquefaction plant at a shipping terminal near Savannah, Ga..
Using El Paso's existing pipeline and terminal infrastructure, the newly created limited liability company will further develop a facility to allow for liquefied natural gas export via ships. Kinder Morgan-owned El Paso will operate the facility and own 51% of the new company, while Shell will snag 49% and 100% of the liquefaction capacity.
"This announcement underscores how the abundance of natural gas in the U.S. is changing the energy landscape," said Shell President Marvin Odum in a statement. "With a measured, phased approach, exports of cleaner burning natural gas can help meet the world's rising energy needs while also giving a boost to the U.S. economy."
Once completed, the project is expected to have liquefaction capacity equivalent to 2.5 million tonnes per year or 350 million cubic feet of gas per day.
According to Kinder Morgan Chairman and CEO Richard Kinder, the project has already received Free Trade Agreement approval and expects non-Free Trade Agreement approval "in due course."
The article Shell and Kinder Morgan to Export LNG From the U.S. originally appeared on Fool.com.Fool contributor Justin Loiseau has no position in any stocks mentioned. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo. The Motley Fool recommends El Paso Pipeline Partners LP and Kinder Morgan. The Motley Fool owns shares of Kinder Morgan. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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