Kinder Morgan hires IHI as contractor on Elba Island LNG project

Kinder Morgan (NYSE: KMI) and IHI E&C jointly announced April 5 that Kinder Morgan subsidiaries Elba Liquefaction Co. LLC and Southern LNG Co. LLC awarded to IHI E&C a contract for the engineering, procurement, construction, commissioning and startup of a liquefied natural gas project at Elba Island, Georgia.

The approximately $2 billion Elba Liquefaction Project will consist of 10 Movable Modular Liquefaction System (MMLS) trains using Shell proprietary technology. The new units will connect to Kinder Morgan’s existing re-gasification terminal at Elba Island, which will be modified to receive liquefied natural gas (LNG) from the new liquefaction facilities. Modifications to the existing Elba facilities will include compression for vapor handling and new pumps for loading the LNG on vessels for export. 

Shell is the customer for 100% of the liquefaction capacity and ship-loading services being developed by the project. When completed, the Elba Liquefaction Project will process and liquefy a total capacity of approximately 2.5 million tonnes per annum of LNG.

“We are excited about this next step for our future LNG export project and look forward to working with IHI E&C to bring it to fruition,” said Norman Holmes, president of Kinder Morgan’s Southern Region Pipelines.

“IHI E&C is very pleased to receive this award, following a period of FEED validation,” said Glyn Rodgers, IHI E&C President. “We and Kinder Morgan share the same quality, safety and performance objectives on making this project a huge success.”

Initial engineering, procurement and construction planning are being performed by IHI E&C’s Houston office while awaiting approval of the project by the Federal Energy Regulatory Commission (FERC). In addition to project modularization, execution will feature significant instrumentation and electrical engineering, logistics and interface management, procurement, supply-chain expertise, and large scale construction. 

The execution strategy includes local subcontracting for site services, local hire for labor, utilization of local vendors for consumables, and working with local authorities on traffic and other community interests.

FERC on Feb. 5 issued for comment a draft environmental assessment (EA) covering natural gas facilities proposed by Elba Liquefaction Co. LLC (ELC), Southern LNG Co. LLC (SLNG) and Elba Express Co. LLC (EEC). The companies are requesting authorization to add natural gas liquefaction and exporting capabilities to SLNG’s existing Elba Island liquefied natural gas (LNG) terminal and abandon SLNG’s existing LNG truck loading facilities at the LNG Terminal in Chatham County, Georgia.

In addition, the companies propose to construct and operate new and modified compression and metering facilities in Hart, Jefferson, and Effingham counties, Georgia, and in Jasper County, South Carolina. The project would enable SLNG to export approximately 2.5 million tons per annum (MTPA) of LNG via the existing LNG Terminal on the Savannah River.

IHI E&C International Corp. (IHI E&C), a wholly-owned subsidiary of IHI Corp., is a Houston-based engineering, procurement and construction (EPC) company providing energy solutions around the globe.

Kinder Morgan is the largest energy infrastructure company in North America. It owns an interest in or operates approximately 84,000 miles of pipelines and approximately 180 terminals. The company’s pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals, and handle bulk materials like coal and petroleum coke.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.