Shell top bidder on LNG capacity at El Paso's Elba Island facility

By the OGJ Online Staff

HOUSTON, Jan.3 -- Shell Gas & Power, a unit of Royal Dutch/Shell Group, acquired rights to all the additional storage capacity El Paso Corp. is planning at the Elba Island liquefied natural gas (LNG) terminal near Savannah, Ga.

Shell offered the top bid in an auction among four bidders for 3.3 bcf of new storage capacity -- an 80% increase on existing capacity -- at the terminal. The gas in storage can be transported from the terminal facility at a rate of 360 MMcfd. The term of the LNG terminal contract is for 30 years. Financial terms were not released.

El Paso received authorization from the Federal Energy Regulatory Commission to begin receiving LNG shipments at the Elba Island facility Dec. 1, 2001. The expansion, expected to be in operation in 2005, will cost about $145 million, El Paso said. Natural gas markets in Georgia, Florida, and South Carolina are served by the facility.

Shell also owns a 25.6% stake in an LNG project in Nigeria and is developing a project in Venezuela. Nigerian Liquefied Natural Gas Ltd., owned by Nigeria National Petroleum Corp., TotalFinaElf SA, Agip International BV, and Shell, has two LNG trains in operation with capacity of 5.78 million tonnes/year, said Mike McGarry, a Shell spokesman. A third train is under construction that will increase the capacity by 50% and a fourth train is "being looked at," he said.

"We have other LNG projects (under development) besides Nigeria in West Africa," said John Hritcko, vice president Shell NA LNG Inc. "There is also the project on the drawing board for years in Venezuela with other partners."

Shell is looking to the US to receive shipments of LNG from its existing facilities and those under development, he said. "The market is extremely strong long term in the US," he said. "We are focusing more on the import capacity of LNG into the US now."

Market research firm Emerging Markets Online, Houston, predicted in a recent study the market for LNG will double over the next 10 years. The research group also said in the November report that the winners in the LNG industry will be those taking a "long-term" view.

LNG imports represent about 5% of overall US gas imports. During the third quarter of 2001, eight importers brought in 28 cargoes from six countries, totaling 66 bcf, down from 32 cargoes totaling 73.6 bcf in the third quarter of 2000, according to the US Department of Energy Office of Natural Gas & Petroleum Import & Export Activities.

Related Articles

Three sentenced in fictitious-trade case

12/22/2009 A former managing director of North American natural gas sales at El Paso Merchant Energy (EPME) and two of the El Paso Corp. division’s gas ...

Haynesville buried-array seismic work set

11/18/2009 El Paso Corp. let contract to MicroSeismic Inc. for a buried-array seismic monitoring program in its Haynesville shale development program south of...

Tudor Pickering Holt forecasts dramatic rise in gas prices

11/05/2009 Tudor Pickering Holt & Co. (TPH) foresees a fairly dramatic recovery in natural gas prices next year, a spokesman told an Oct. 29 energy financ...

Texas-South

11/04/2009 El Paso Corp. said it has almost doubled its lease position to 112,000 net acres in the South Texas Cretaceous Eagle Ford shale gas-condensate play...

Oklahoma

09/23/2009 Credo Petroleum Corp., Denver, said the Southeast Hewitt Unit in which it holds 17% interest has produced 785,000 bbl of oil due to waterflooding f...

FERC issues final EIS for FGT expansion project

09/22/2009 The US Federal Energy Regulatory Commission’s staff issued a final environmental impact statement on Florida Gas Transmission Co.’s Pha...

Camamu-Almada basin block to be relinquished

09/21/2009 A group led by Petroleo Brasileiro SA (Petrobras) plans to relinquish the B-CAM-40 exploration block to Brazil’s Agencia Nacional do Petroleo...

El Paso settles SEC reserve reporting charges

07/15/2008 El Paso Corp. and five former employees settled federal charges of inflating, or participation in inflating, reported proved oil and gas reserves i...

El Paso moving forward with Ruby pipeline

06/26/2008 El Paso Corp.'s subsidiary, Ruby Pipeline LLC received more than 1.1 bcfd of binding commitments from gas shippers for its Ruby pipeline under 10-1...
White Papers

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by
Available Webcasts

On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected