Shell US Gas & Power, a subsidiary of Royal Dutch Shell, and Southern Liquefaction Company, a Kinder Morgan company and unit of El Paso Pipeline Partners, intend to form a limited liability company to develop a natural gas liquefaction (LNG) plant in two phases.

According to a statement issued by Shell on Monday, the companies will modify the Elba Express Pipeline and Elba Island LNG Terminal to physically transport natural gas to the terminal and to load the LNG onto ships for export.

Marvin Odum, President of Shell Oil Company, said: "This announcement underscores how the abundance of natural gas in the U.S. is changing the energy landscape."

"With a measured, phased approach, exports of cleaner burning natural gas can help meet the world's rising energy needs while also giving a boost to the US economy."

Richard Kinder, Chairman and Chief Executive Officer of Kinder Morgan, said: "This project will facilitate further development of the abundant natural gas resources in the United States and will be a positive factor in the overall balance of trade between the U.S. and other countries."

Once finalised, the El Paso Pipeline Partners, through its affiliates, will own 51% of the entity and operate the facility.

Shell, through its affiliates, will own the remaining 49% and subscribe to 100% of the liquefaction capacity.

MF

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