Kinder Morgan reported Thursday that it received approval from the Federal Energy Regulatory Commission (FERC) for its $2 billion Elba Liquefaction Project, which is proposed for construction and operation at the existing Elba Island LNG Terminal near Savannah, Georgia.
The first of 10 liquefaction units will be placed and online by the second quarter of 2018 with the rest of the nine units starting operations by the end of 2018. This project is supported by a 20-year contract between Shell and Kinder Morgan and is expected to produce roughly 350 million cubic feet a day of liquefied natural gas.
Once the final regulatory approvals are granted for the project, construction could begin in as little as 60 days following the approval. Kinder Morgan reported earlier this year that it planned to sell a stake in the project to private equity groups in order to help with the financing of the project. Kinder Morgan’s idea is to cut capital costs during the current oil recession.
Kinder Morgan is headquartered in Houston, Texas and is the largest energy infrastructure in North America, owning interest or operating roughly 84,000 miles of pipeline and owning about 180 terminals.