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FERC authorises Elba liquefaction project

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LNG Industry,

The US Federal Energy Regulatory Commission (FERC) has granted authorisation to Elba Liquefaction Co. and Southern LNG Co. for the Elba liquefaction project. Both companies are subsidiaries of Kinder Morgan Inc.

The US$2 billion (approximately) project will be located at the existing Elba Island LNG terminal near Savannah, Georgia, US. The first of 10 liquefaction units is scheduled to enter service in 2Q18, with the rest expected to enter service before year-end.

Kinder Morgan also announced that FERC has granted Certificates of Public Convenience and Necessity to Elba Express Co. and Southern Natural Gas Co. for the EEC modification project and SNG Zone 3 expansion project, respectively. Overall, these projects total US$306 million.

Authorisation was already granted by the US Department of Energy (DOE) for the Elba liquefaction project to export to Free Trade Agreement (FTA) countries in 2012. Although an application has now been made to export to non-FTA countries, approval is not necessary for the project to proceed. Overall, the project is expected to have a capacity of approximately 2.5 million tpy of LNG for export. This is equivalent to approximately 350 000 mcf/d of gas.

Edited from press release by David Rowlands

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