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FERC authorises KMI projects

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World Pipelines,

Kinder Morgan, Inc. (KMI) has announced that subsidiaries Elba Liquefaction Company, L.L.C. (ELC) and Southern LNG Company, L.L.C. (SLNG), have received authorisation from the Federal Energy Regulatory Commission (FERC) for the Elba liquefaction project. The approximate US$2 billion project will be constructed and operated at the existing Elba Island LNG terminal near Savannah, Georgia. As previously announced, 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 Company L.L.C. (EEC) and Southern Natural Gas Company, L.L.C. (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 US$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 authorisation from the 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 approximately 2.5 million tpy of LNG for export, equivalent to approximately 350 000 million ft3/d of natural gas.

Edited from source by Stephanie Roker

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