16th Jul 2015 16:18
LONDON (Alliance News) - Royal Dutch Shell PLC said Thursday it has agreed to sell its 49% stake in the Elba Liquefaction Company LLC, which owns the Elba Liquefaction project proposed to be constructed in Savannah, Georgia, to Kinder Morgan Inc.
Kinder Morgan Inc currently owns 51% of the Elba Liquefaction joint venture, Shell owns the remaining 49% and subscribes to 100% of the liquefaction capacity.
Shell said that Kinder Morgan's expected incremental investment resulting from this transaction is around USD630 million, bringing its total incremental investment at Elba Island to around USD2.1 billion.
Permitting continues for the project, Shell said, and subject to regulatory approvals construction could begin in the fourth quarter of 2015, with initial production expected to occur in late 2017.
"We are very pleased to purchase Shell's equity interest in the joint venture and advance the project with Shell's continued support and subscription to 100 percent of the capacity of our world-class Elba Island terminal," said Kimberly Watson, President of Kinder Morgan's East Region Natural Gas Pipelines segment in a statement.
Royal Dutch Shell 'A' shares closed up 0.6% at 1,835.50 pence Thursday, whilst 'B' shares were up 0.4% at 1,855.14 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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