El Paso Pipeline Partners’ Unit Announces Phase II of Liquefaction Project at Elba Island LNG Terminal

Thursday, December 19, 2013 3:41 pm EST

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HOUSTON

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KMP
"We are pleased that this liquefaction project, which will cost approximately $1.5 billion at full development, continues to advance"

HOUSTON--(BUSINESS WIRE)--El Paso Pipeline Partners, L.P. (NYSE: EPB) today announced that Shell US Gas & Power LLC (Shell), a Royal Dutch Shell plc subsidiary, has given notice to Elba Liquefaction Company, L.L.C. to move forward on Phase II of the jointly-owned natural gas liquefaction project at Southern LNG Company’s Elba Island LNG Terminal, near Savannah, Ga. EPB’s Southern Liquefaction Company unit owns 51 percent of Elba Liquefaction Company.

Capacity to be added in Phase II will range from 70 million cubic feet per day (MMcf/d) (0.5 million tonnes per year) up to 140 MMcf/d (1.0 million tonnes per year). The estimated capital expenditure of Phase II at the maximum volume of 140 MMcf/d is approximately $500 million.

Phase I of the project, consisting of six liquefaction units, will provide approximately 210 MMcf/d of export capacity. It is anticipated to be in service in late 2016 or early 2017. Phase II, covering two additional liquefaction units, has an expected in-service in 2017-2018.

If the maximum volume for Phase II is elected, the Elba liquefaction project is expected to have total capacity of approximately 350 MMcf/d (2.5 million tonnes per year) of LNG.

“We are pleased that this liquefaction project, which will cost approximately $1.5 billion at full development, continues to advance,” said Kimberly S. Watson, president, Natural Gas Pipelines East Region for Kinder Morgan. “This project will further enhance what has become an abundant natural gas resource in the United States and will result in development of new international markets without straining the availability or cost of natural gas supply to U.S. markets. Moreover, the Elba Liquefaction Project will be a positive factor in the overall balance of trade between the U.S. and other countries, as well as generate local and state benefits.”

The project was initially announced in early 2013 and will use Shell’s innovative small-scale liquefaction units, which will be integrated with the existing Elba Island facility and enable rapid construction compared to traditional large-scale plants.

The project is currently in the Federal Energy Regulatory Commission (FERC) review process, which is conducted in accordance with the National Environmental Policy Act. Site construction will begin after FERC issues an Authorization to Proceed and Construct.

El Paso Pipeline Partners (NYSE: EPB) is a publicly traded pipeline limited partnership. It owns an interest in or operates more than 13,000 miles of interstate natural gas transportation pipelines in the Rockies and the Southeast, natural gas storage facilities with a capacity of nearly 100 billion cubic feet and LNG assets in Georgia. The general partner of EPB is owned by Kinder Morgan, Inc. (NYSE: KMI). Kinder Morgan is the largest midstream and the fourth largest energy company in North America with a combined enterprise value of approximately $105 billion. It owns an interest in or operates more than 82,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMI owns the general partner interests of Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and El Paso Pipeline Partners, L.P. (NYSE: EPB), along with limited partner interests in KMP and EPB, and shares in Kinder Morgan Management, LLC (NYSE: KMR). For more information please visit http://www.kindermorgan.com.

This news release includes forward-looking statements. These forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although EPB believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include those enumerated in EPB’s reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, EPB undertakes no obligation to update or review any forward-looking statement because of new information, future events or other factors. Because of these uncertainties, readers should not place undue reliance on these forward-looking statements.

Contact:

El Paso Pipeline Partners
Media Relations
Richard Wheatley, 713-420-6828
richard_wheatley@kindermorgan.com
or
Investor Relations, 713-369-9490
km_IR@kindermorgan.com
www.kindermorgan.com

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