Kinder Gains Federal Approval for LNG Export Project

Kinder Morgan subsidiaries Elba Liquefaction Company and Southern LNG Company received FERC authorization for the $2 billion Elba Liquefaction Project.

The project, supported by a 20-year contract with Shell, will be constructed at the existing Elba Island LNG Terminal near Savannah, GA. The first of 10 liquefaction units are expected in service in the second quarter of 2018, with the remaining nine units coming online before the end of 2018, Kinder Morgan said.

Additionally, the two subsidiaries received certificates of public convenience and necessity for the EEC Modification Project and SNG Zone 3 Expansion Project, totaling $306 million. This includes additional compression and related work for north-to-south capacity expansions on Elba Express Pipeline to supply additional gas to industrials and utilities in Georgia and Florida, as well as to Elba Island for liquefaction.

Facilities for these pipeline projects are expected in service late in the fourth quarter, the companies said.

An application from the Elba Liquefaction Project to export to non-FTA countries is pending but not required for the project to move ahead. The liquefaction project is expected to have capacity of about 2.5 mtpa of LNG for export, equivalent to about 350,000 MMcf/d of natural gas.

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