Elba III Terminal Expansion

Recently, Southern LNG announced plans to significantly expand its Elba Island liquefied natural gas (LNG) once again to meet the increased need for new natural gas delivery infrastructure to serve growth markets in the Southeastern United States. The Elba Island expansion will add 8.4 billion cubic feet (Bcf) of storage capacity at the facility and 900 million cubic feet per day (MMcf/d) of send-out capacity, doubling the storage and send-out capabilities of the facility. The expansion will take place in two phases. The initial phase will include installation of a new 4.2 Bcf storage tank and modification of the docking facilities to accommodate new, larger delivery vessels. This phase of the expansion will be placed in service in mid-2010. The second phase of the terminal expansion will add another 4.2 Bcf storage tank. This phase is expected to be completed in 2012.

Progress in Pre-Filing Process
As of July 31, 2006, the Elba III Terminal Expansion Project (the Project) has filed with the Federal Energy Regulatory Commission (FERC) 2nd drafts of the required resource reports.  The Project remains on schedule and the company filed its certification application with FERC on September 29, 2006.