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Elba Island LNG start-up delayed to late April

  • Märkte: Natural gas
  • 21.03.19

The start-up date for the Elba Island LNG export plant near Savannah, Georgia, has been pushed back to late April from the late first quarter because of construction delays, majority owner Kinder Morgan told Argus today.

Elba Island would export its first cargo in May or later, as the facility would need to accumulate enough LNG in tank storage after the first small liquefaction train is placed in service in late April, Kinder Morgan said. The timing of the first export would be determined by Shell, which has signed a 20-year deal for all the liquefaction capacity being installed at the facility.

The $2.2bn Elba Island project is the smallest of six LNG export projects being built in the US. It would comprise 10 modular liquefaction trains with combined baseload capacity of 2.5mn t/yr, equivalent to 350mn cf/d of gas, and peak capacity of 4mn t/yr.

A standard LNG tanker carries a gas equivalent of 3-3.5 Bcf, so the first train would likely need to operate at capacity for about 100 days to produce enough LNG on its own for the first export. But if other successive units come on line soon after train 1, the timing of the first export could be significantly shortened.

Shell, the largest customer of US LNG, is building the trains with a proprietary technology, with the goal of installing additional modular units at other locations.

Kinder Morgan in January said the start-up date had been delayed to the late first quarter from the fourth quarter and that all 10 trains would likely come on line this year. But today it said "the in-service date of the final unit will depend on the duration of commissioning activities for successive units."

Elba Island could be the fourth or fifth LNG export project to come on line in the contiguous US, depending on when the Sempra Energy-led Cameron LNG project in Louisiana starts exporting. Sempra in February said the first of the three trains being built at the 12mn t/yr Cameron facility would start to receive feed gas this quarter and complete testing in the second quarter. The company did not reply to an Argus inquiry on the facility's status today. Cameron train 2 is scheduled to be completed by the end of the fourth quarter and train 3 by the end of the first quarter next year.

The first of three trains being built at the 13.9mn t/yr Freeport LNG project in Texas will likely start exporting test cargoes this summer and is on track to start commercial operations in the third quarter, the company told Argus today. Train 2 is expected to start commercial operations in the first quarter next year and train 3 in the second quarter of 2020.


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