Southern LNG Seeks FERC Authorization to Install Nitrogen Injection System at Elba Island

Late last week Southern LNG filed a request for review and approval to commence construction of a liquid nitrogen injection system as part of the Elba Island LNG terminal expansion project. Southern LNG states in its filing that the nitrogen injection system will help the terminal maintain its gas quality and interchangeability specifications and will allow it to treat LNG it purchases on the spot market. Southern LNG has asked FERC to approve the company’s request by November 12, 2009.

In response to SLNG’s filing, Marathon LNG filed a letter with FERC requesting the agency order SLNG to provide clarification regarding (1) SLNG’s statement that it is purchasing LNG on the spot market given all of the terminal’s capacity is subscribed, and (2) how SLNG intends to use the new nitrogen injection system in light of the integrated nature of the facility and the non-discrimination provisions of the Natural Gas Act and EPAct 2005. Both Southern LNG’s filing and Marathon LNG’s letter are available in the FERC eLibrary under Docket No. CP06-470.

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