Yesterday the Federal Energy Regulatory Commission (FERC) granted a request to Kinder Morgan to “introduce feed gas, back-up fuel, and BOG fuel” to the first of what will be 10 production units at its Elba Island, Georgia LNG export facility. This is yet another step toward bringing the facility online.
Just a month ago we told you that FERC granted Elba permission to “proceed with introduction of fuel gas to commission the HF-LF flare pilot system” (see Kinder Morgan Takes Another Baby Step with Elba Island LNG). Step by step by step it’s happening. Elba Island will be the second LNG export facility along the East Coast, after Cove Point in Maryland.
As we previously noted, Elba is quite a bit smaller than Cove Point. Whereas Cove Point, which has been up and running for a year now, can take in and liquefy up to 3.5 billion cubic feet per day (Bcf/d) of natural gas, Elba Island will be able to liquefy up to 350 million cubic feet per day (MMcf/d)–just 10% of Cove Point’s capacity.
But hey, the gas Elba Island will be liquefying and exporting will come from the Marcellus, so it’s all good (see Confirmed: Marcellus Gas to Feed Elba Island LNG Export Plant).
Houston pipeline operator Kinder Morgan is one step closer to placing its $2 billion Elba Island LNG export terminal in Savannah, Ga., into service.
In a Wednesday morning order, the Federal Energy Regulatory Commission gave Kinder Morgan permission to start introducing feed gas into the first of 10 production units being built at the liquefied natural gas plant.
Kinder Morgan began the weeks- to months-long startup process for the liquefaction plant in early February. Being able to introduce feed gas is another step towards being the facility into commercial service.
Once all 10 production units are operational, the facility will be able to produce up to 2.5 million metric tons of LNG a year.
Elba Island LNG is being developed as a joint venture of Kinder Morgan and EIG Global Energy Partners, a private equity firm based in Washington, D.C.
Originally built as a facility to import natural gas, record production in U.S. shale basins prompted Kinder Morgan to seek permission from the federal government to reconfigure part of the facility into an export terminal that will include 10 production terminals, known as trains.
The company received a permit to build the export terminal in June 2016. The first of the 10 trains is expected to be fully operational and capable of producing exports by the end of the first quarter.
Founded in 1997 and headquartered in downtown Houston, Kinder Morgan employs more than 11,000 people across the United States. Canada and Mexico.
The company made a $1.48 billion profit on $14.1 billion of revenue in 2018.*
*Houston (TX) Chronicle (Mar 6, 2019) – Feds give Kinder Morgan permission to introduce feed gas at Elba Island LNG
FERC’s latest permission for Elba Island:
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