Kinder Morgan announces $2B Elba liquefaction unit operation

HOUSTON-The Elba Liquefaction Company, L.L.C. (ELC), a joint venture between Kinder Morgan, Inc. and EIG Global Energy Partners (EIG), announced the commercial in service of the first of ten liquefaction units of the approximately $2 billion Elba Liquefaction project. Previously only a liquefied natural gas (LNG) import terminal, the Elba Island Liquefaction facility is now also able to produce LNG for export purposes. With the first unit in service, the company is now earning approximately 70 percent of the expected total daily revenue of the liquefaction units.

“This is a great milestone that was achieved with an exemplary safety record,” said Kinder Morgan Natural Gas South Region President Norman Holmes. “It is also an important step for the United States as the country becomes a key energy exporter.”

Progress is also being made on the remaining nine units. Startup activities are underway on the second and third units, the commissioning of units four through six is ongoing, and construction on the remaining units is largely complete. Under full development, the Elba Island Liquefaction facility is expected to have a total capacity of approximately 2.5 million tonnes per year of LNG for export, which is equivalent to approximately 350,000 Mcf per day of natural gas.

ELC, a KMI joint venture with EIG as a 49 percent partner, will own the liquefaction units and other ancillary equipment. Certain other facilities associated with the project are 100 percent owned by KMI. The project is supported by a 20-year contract with Shell, who is subscribed to 100 percent of the liquefaction capacity.

(BUSINESS WIRE)

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