Project Description

Southern LNG, Inc. (Southern LNG) of Birmingham, Alabama, a subsidiary of Southern Natural Gas Company (Southern), an El Paso Company proposes to expand its existing Elba Island LNG terminal located in Savannah, Georgia in order to increase storage and send-out capacity. Southern LNG currently owns and operates one of the four operating liquefied natural gas (LNG) terminals in the United States.

Southern LNG plans to complete the expansion in two phases. The total project is estimated to cost approximately $350 Million. Phase I of the project will add one 200,000 cubic meter storage tank which holds 1,250,000 barrels. The new tank will be complete by mid-year of 2010 and will add approximately 4.2 billion cubic feet (Bcf) of LNG storage capacity to the terminal. Maximum send out capacity will be 0.405 Bcf/d. Phase I of the project will also include modifying the north and south docks to accommodate new larger vessels and to facilitate simultaneous unloading of two ships.

Phase II of the project will add one 200,000 cubic meter (1,250,000 barrel) storage tank. This tank will add approximately 4.2 Bcf storage capacity to the terminal in 2012 and increase send out by 0.495 Bcf/d. The liquefied natural gas for the expansion will be transported by ship from gas rich regions outside of the United States. Southern LNG's facilities at Elba Island will vaporize the LNG and inject the natural gas into Southern's existing pipeline.

Southern LNG is currently completing an expansion that includes adding one storage tank which is expected to be in service February 2006. The storage capacity of the facility will be 7.3 Bcf by the 1st quarter of 2006. The estimated total capacity of the terminal after the proposed expansion will be 15.7 Bcf.