FERC authorizes Elba liquefaction work commencement

The United States Federal Energy Regulatory Commission on Tuesday issued a notice to Elba Liquefaction Company and Southern LNG Company to begin work on the Elba liquefaction project. 

As it stands in the notice, the two Kinder Morgan units have been authorized to begin the work related to the South Channel barge dock construction, including dredging and in-water pile driving.

The notice also claims that this approval does not grant the companies authority to commence construction of project facilities at the LNG terminal.

Kinder Morgan previously informed that the construction of the project will start on November 1.

The project will be constructed and operated at the existing Elba Island LNG terminal near Savannah, Georgia.

Initial liquefaction units for the $2 billion project are expected to be placed in service in mid-2018, with final units coming on line by early 2019, reaching total production capacity of 2.5 million tons per year.

Kinder Morgan said that the project is supported by a 20-year contract with Shell.

In 2012, the Elba liquefaction project received authorization from the Department of Energy to export to Free Trade Agreement (FTA) countries. An application to export to non-FTA countries is pending but is not required for the project to move ahead.

LNG World News Staff