U.S. FERC approves Elba Island LNG export project

FERC authorizes Elba liquefaction project

Kinder Morgan on Thursday said its units Elba Liquefaction and Southern LNG received approval from the Federal Energy Regulatory Commission for the Elba liquefaction and export project.

In its statement, Kinder Morgan informed its units have also received FERC certificates of public convenience and necessity for the EEC modification project and SNG Zone 3 expansion project, respectively.

The liquefaction project has a price tag of $2 billion and 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. The project is supported by a 20-year contract with Shell, Kinder Morgan added.

The other expansion works that 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.

The liquefaction project is expected to have a total capacity of approximately 2.5 million tons per year of LNG for export, equivalent to approximately 350,000 Mcf per day of natural gas.

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