Reuters are reporting that Kinder Morgan Inc (KMI) has delayed the startup of its nearly US$2 billion Elba LNG export terminal in Georgia by one quarter to Q4 of 2018.
KMI said in its earnings release late 18 July that the first six liquefaction units at Elba would enter service in the fourth quarter followed by the next four units in the third quarter of 2019.
The project will have the ability to liquefy about 2.5 million tpy of LNG, equivalent to about 0.35 billion ft3 per day of natural gas.
1 billion ft3 of gas is enough to fuel about five million US homes for a day.
The Elba project is supported by a 20-year contract with a unit of Royal Dutch Shell Plc.
Elba is owned by units of KMI and EIG Global Energy Partners.
Separately, KMI said it was evaluating whether it could turn its proposed US$2 billion Permian Highway gas pipeline in Texas into a bigger project, using a 48 in. pipe instead of a 42 in. pipe, due to the high level of interest in the project.
The Permian Highway is designed to transport up to 2 billion ft3 per day of gas about 692 km from the Waha, Texas, area to the US Gulf Coast and Mexico by late 2020.
A unit of KMI and EagleClaw Midstream Ventures will be the initial partner in the Permian Highway with 50% ownership. Apache Corp and EagleClaw will be significant shippers on the proposed pipe. Apache will have an option to acquire up to 33% equity in the project.
In addition, KMI said the first phase of the Midland Lateral of its 2-bcfd Gulf Coast Express gas pipeline, which will also move gas from the Permian basin to the Gulf Coast, was expected to enter service on 1 August.
KMI said the entire US$1.75 billion Gulf Coast project remains on schedule for an October 2019 in service date.
KMI will build and operate the Gulf Coast project and own a 50% interest in the pipe along with DCP Midstream LP (25%) and an affiliate of Targa Resources Corp (25%). Apache also has an option to purchase up to a 15% stake in the project from KMI.
Read the article online at: https://www.lngindustry.com/liquefaction/20072018/kinder-morgan-delays-startup-of-georgia-elba-lng-terminal-to-q4/
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