Kinder Morgan Entering LNG Business, FERC Gives Green Light for Elba Island LNG Startup

FERC officials issued an order on Tuesday giving permission to Kinder Morgan to start introducing chemicals into loading pumps. The process will feed a liquefied natural gas storage tank in its Elba Island LNG export terminal in Savannah, Georgia.

This will make Kinder Morgan one step closer to starting up the first of ten production units and mark the company's entrance into the LNG business. "This FERC order brings us one step closer to completing the required commissioning activities for the first unit at Elba Island," Kinder Morgan spokeswoman Katherine Hill said in a statement.

Shell has partnered with Kinder Morgan in a 20-year deal to market and export all the LNG produced at the Georgia facility. The facility will be able to produce up to 2.5 million metric tons of LNG a year.

After the first production unit is online, Kinder Morgan expects to start up the remaining nine productions one by one over nine months’ time. Those ten smaller and modular liquefaction plants will supercool natural gas and condense it to a liquid form that makes it easier to ship.