Southern LNG Co. LLC has asked FERC to vacate part of an order that authorized the second phase of the expansion of the Elba Island liquefied natural gas (LNG) import terminal in Georgia.

In a motion seeking to vacate a portion of the September 2007 order approving the project, the El Paso Corp. subsidiary said that BG LNG Services LLC, which was expected to subscribe to the expansion capacity, did not intend to do so, making the expansion was no longer necessary.

The second phase of the Elba Island expansion called for the addition of 4.22 Bcf of storage and 495 MMcf/d of deliverability, according to Southern LNG. The first phase, which went into operation in 2010, added 4.22 Bcf of LNG storage and 405 MMcf/d of firm sendout capacity.

U.S. LNG imports were once thought to be the future of the market, and that thinking spurred a regasification terminal construction craze. But the import potential has dimmed with the advent of Marcellus and other shale gas supplies, as well as the disparity in the price of LNG between the United States and world markets. These factors have led to a plentiful and inexpensive supply of natural gas in the U.S. and higher demand and prices for LNG elsewhere.

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