The Elba Liquefaction project now has a total operational capacity of nearly 2.5 million tonnes per year of LNG
Kinder Morgan and EIG Global Energy Partners have achieved full commercial operations at the nearly $2bn Elba Liquefaction project in Chatham County, Georgia, US.
The milestone was met after their joint venture Elba Liquefaction Company (ELC) brought Unit 7 into commercial in-service. Unit 7 is the last of 10 movable modular liquefaction units of the project developed on the Elba Island.
The Elba Liquefaction project now has a total operational capacity of nearly 2.5 million tonnes per year of LNG, which is equivalent to about 350 million cubic feet (MMcf) per day of natural gas.
Originally operating as only a liquefied natural gas (LNG) import terminal, the Elba Island Liquefaction facility is now capable of producing LNG for export purposes.
Kinder Morgan natural gas east region president Kimberly Watson said: “The development of this facility was a tremendous undertaking, and we are extremely pleased to have this project in service.
“The team coordinated with our customer and local, state and federal agencies to put in service a new technology for modular liquefaction units. Its functionality as a bi-directional import/export facility makes it ideal for the changing flow patterns that can occur from time to time.”
EIG Global Energy Partners, which has a 49% stake in ELC, owns the liquefaction trains and other ancillary equipment. Kinder Morgan, on the other hand, owns 100% of certain other facilities related to the project.
The Elba Liquefaction project is supported by long-term contract with Shell
The Elba Liquefaction project is underpinned by a 20-year contract with Shell LNG, which had subscribed to its full liquefaction capacity.
The project, which was announced in January 2013 by Kinder Morgan’s unit Southern Liquefaction and Royal Dutch Shell, broke ground in November 2016. In less than three years after that, the first of the 10 liquefaction units of the project was brought into commercial service.
Prior to that in July 2015, Kinder Morgan said that it will acquire Shell’s 49% stake in ELC to become its full owner in a deal worth around $630m. Subsequently, in February 2017, Kinder Morgan sold a 49% stake in ELC to EIG Global Energy Partners for about $385m.