Kinder Morgan Inc. (NYSE: KMI) announced June 2 that subsidiaries Elba Liquefaction Co. LLC (ELC) and Southern LNG Co. LLC (SLNG) have received authorization from the Federal Energy Regulatory Commission for the Elba Liquefaction Project.
The approximate $2 billion project will be constructed and operated at the existing Elba Island LNG Terminal near Savannah, Georgia. The first of 10 liquefaction units is expected to be placed in service in the second quarter of 2018, with the remaining nine units coming online before the end of 2018. This project is supported by a 20-year contract with Shell.
KMI also announced that Elba Express Co. LLC (EEC) and Southern Natural Gas Co. LLC (SNG) have received from FERC Certificates of Public Convenience and Necessity for the EEC Modification Project and SNG Zone 3 Expansion Project, respectively. Together these projects total $306 million and include additional compression and related work for north-to-south capacity expansions on Elba Express Pipeline that will supply additional gas to industrials and utilities in Georgia and Florida and to Elba Island for liquefaction. Facilities for these pipeline projects are expected to be placed in service late in the fourth quarter of 2016.
In 2012, the Elba Liquefaction Project received authorization from the U.S. Department of Energy to export to Free Trade Agreement (FTA) countries. An application to export to non-FTA countries is pending, but is not required for the project to move ahead. The liquefaction project is expected to have a total capacity of about 2.5 million tonnes per year of LNG for export, equivalent to around 350,000 Mcf per day of natural gas.
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.