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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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FEATURED COLUMNS

Editorial Comment: The Future of FLNG: Less is More?
-Adrienne Blume
Global LNG export capacity is expected to increase by 45% between 2017 and 2022, to more than 400 metric MMtpy, with 90% of the new capacity coming from sanctioned projects in the U.S. and Australia. By 2050, this capacity is anticipated to exceed 700 MMtpy. Regasification capacity is anticipated to increase even more sharply.
Executive Viewpoint: Back to production: Where we’re going, we don’t need pipelines
-Mark Casaday
What if a cost-effective way existed to extract and distribute natural gas, regardless of proximity to pipeline, and bring those assets back to production? What if the industry went in a direction that did not need pipelines? For those looking to monetize unproductive natural gas assets or bring unproductive wells back to production, it would be revolutionary.
Regional Focus:Australia to boost LNG exports despite domestic gas shortage
-Eugene Gerden
Australia is planning further increases in LNG production and exports over the next decade, despite quickly depleting reserves and a looming supply shortage in the domestic market.


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