Kinder Morgan (KMI) has divested 49% stake in Elba Liquefaction Company (ELC) to the funds managed by EIG Global Energy Partners, for about $385m.
The deal also includes the payment of about $170m in excess of capital expenditures in consideration of the value created by KMI in developing the project.
ELC will own 10 liquefaction units and other ancillary equipment to be developed under Elba liquefaction project at Kinder Morgan’s existing Elba Island LNG facility near Savannah, Georgia.
Subject to the terms and conditions, EIG has agreed to fund its share of future capital expenditures required for construction and commissioning of the liquefaction facility.
Excluding capitalized interest, the total cost of the project is expected to be around $1.3bn.
With final units expected to be completed by early 2019, the initial liquefaction units are slated to be operational in mid-2018.
The project is expected to produce around 2.5 million tones of LNF per year, which is equivalent to about 350 million cubic feet per day of natural gas.
Kinder Morgan president and CEO Steve Kean said: “We are excited that EIG will become an equity owner in Elba Liquefaction Company as construction continues at Elba Island.
“The project, which began construction on Nov. 1, 2016, is supported by a 20-year contract with Shell.”
EIG managing director Wallace Henderson said: “This is a tremendous project that builds on our long-standing and extensive experience in LNG and LNG-related infrastructure.”