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FERC OKs Elba Island LNG liquefaction trains

  • Märkte: Natural gas
  • 18.09.17

The US Federal Energy Regulatory Commission (FERC) today authorized Georgia's Elba Island LNG export project to install its planned 10 modular liquefaction trains.

Elba Island would be the third major LNG export project to come on line in the contiguous US. The initial trains are scheduled to start operating in mid-2018, with full production by mid-2019, Kinder Morgan told Argus today.

Kinder Morgan previously said the initial trains would start operating in mid-2018 and full production would be reached by early 2019.

Louisiana's Sabine Pass LNG export terminal started exporting in February 2016 and Maryland's Cove Point LNG facility is on track to start service late this year.

FERC said Elba Island needs separate approvals to start construction of other facilities at the site.

Elba Island is the only major LNG export terminal being built in the contiguous US that will use small movable modular liquefaction trains. The trains will be built off site and delivered to the Elba Island facility near Savannah, Georgia, which houses an existing LNG import terminal.

The modular trains are being built by Shell, which has a 20-year take-or-pay contract for all the planned liquefaction capacity at Elba Island.

The use of modular technology will allow Elba Island to have a lower total cost and a faster construction schedule than the other projects being built in the US, but it would not necessarily provide Elba Island a lower unit cost.

The estimated cost of the Elba Island project, including capitalized costs and associated pipeline expansions, is about $2.2bn. The 10 modular trains would have combined baseload liquefaction capacity of 2.5mn t/yr, equivalent to 350mn cf/d (9.9mn m³/d) of gas, and peak capacity of 4mn t/yr.

The estimated cost of the 25mn t/yr Sabine Pass facility is about $20bn. Shell also has 20-year contracts for a combined 5.5mn t/yr of capacity at Sabine Pass.

Kinder Morgan owns 51pc of the Elba Island export terminal and investment funds managed by EIG Global Energy Partners own 49pc.

The six facilities being built would have combined baseload capacity of about 64mn t/yr and peak capacity of about 75mn t/yr, almost equaling Qatar capacity of 77mn t/yr.


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