Kinder Morgan announced that investment funds managed by EIG Global Energy Partners (EIG) have become a 49% joint venture participant in Elba Liquefaction Co. (ELC)
Kinder Morgan announced that investment funds managed by EIG Global Energy Partners (EIG) have become a 49% joint venture participant in Elba Liquefaction Co. (ELC) which will own 10 liquefaction trains and other ancillary equipment to be constructed as part of the Elba Liquefaction Project at Kinder Morgan’s existing Elba Island LNG imports terminal near Savannah, Georgia.
EIG has made an upfront cash payment of approximately $385 million, consisting of reimbursement to KMI for EIG’s 49 percent share of prior ELC capital expenditures, excluding capitalized interest, and a payment of approximately $170 million in excess of capital expenditures in consideration of the value created by KMI in developing the project to this stage.
EIG has agreed to fund its share of future capital expenditures necessary to complete construction and commissioning of the liquefaction facility, subject to the terms and conditions contained in the applicable agreements. The total project cost is estimated to be approximately $1.3 billion, excluding capitalized interest, Kinder Morgan said in its statement.
Elba LNG export project will utilize Shell's small-scale movable modular liquefaction system (MMLS®) and its initial liquefaction trains “are currently expected to be placed in service in mid-2018, with final units coming on line by early 2019.” The project is expected to have a total capacity of approximately 2.5 MMT/Y of LNG as each train has 0.25 MMT/Y capacity.
Elba LNG export project authorized by the FERC and DOE
EPC contract for Elba Island LNG export project awarded to IHI E&C