El Paso unit buys stake in Gulf LNG terminal
El Paso Corp. subsidiary Southern Natural Gas Co. (SNG) has agreed to acquire a 50% interest in a planned LNG terminal in Pascagoula, Miss.
By OGJ editors
HOUSTON, Nov. 30 -- El Paso Corp. subsidiary Southern Natural Gas Co. (SNG) has agreed to acquire a 50% interest in a planned LNG terminal in Pascagoula, Miss.
The $1.1 billion Gulf LNG project, which received regulatory approval early this year, includes construction of two, 160,000 cu m storage tanks with a combined capacity of 6.6 bcf; 10 vaporizers, providing a base send-out capacity of 1.3 bcfd; and 5 miles of 36-in. pipeline connecting the terminal to the Destin, Gulfstream, Florida Gas Transmission, and Transco pipelines. The terminal is expected to be placed in service in late 2011.
SNG will operate the facility and will manage its construction.
Gulf LNG has negotiated 20-year firm service agreements for all of the terminal's capacity.
Other partners in the Gulf LNG project are Houston-based The Crest Group 30%, and Sonangol USA 20%.