NEW YORK Shell US Gas & Power LLC, a subsidiary of Royal Dutch Shell Plc, and Southern Liquefaction Co. LLC, a subsidiary of Houston-based El Paso Pipeline Partners LP (EPB), are planning to export liquefied natural gas (LNG) from EPBs Elba Island terminal near Savannah, Ga.
With a measured, phased approach, exports of cleaner-burning natural gas can help meet the worlds rising energy needs while also giving a boost to the U.S. economy, Marvin Odum, president of Royal Dutch Shells U.S. subsidiary, Shell Oil Co., said in a statement.
The project is expected to have a liquefaction capacity of about 2.5 million tonnes of LNG per year, with its first phase slated for 1.5 million tonnes. The terminal has already received U.S. Energy Department approval to export up to 4 million tonnes of LNG per year to Free Trade Agreement (FTA) countries, with an application pending to export up to 4 million tonnes to non-FTA countries.
The subject of LNG exports has proved divisive in the metals industry. Nonprofit group Americas Energy Advantagewhich includes steelmaker Charlotte, N.C.-based Nucor Corp. and Pittsburgh-based aluminum producer Alcoa Inc.recently expressed concern that LNG exports could hurt the U.S. economy by negating its competitive advantage on energy costs (amm.com, Jan. 11
). On the other hand, LNG export infrastructure could potentially create significant demand for construction steel as well as steel pipe and tube (amm.com, Oct. 5