Southern LNG seeks blanket permit, Elba exports to start in Q3

The United States Department of Energy noted it has received an application by Southern LNG Company seeking blanket authorization to export LNG from the Elba liquefaction project at the Elba Island in Georgia. 

The company requests a blanket authorization to export domestically produced and previously imported liquefied natural gas (LNG) in an amount up to the equivalent of 255 billion cubic feet (Bcf) of natural gas on a cumulative basis over a two-year period, commencing on the date of the initial short-term export.

Southern LNG, a unit of Kinder Morgan, requests authorization to export the LNG to any country with the capacity to import LNG via ocean-going carrier, DOE said, adding the destinations include the free trade agreement (FTA) and the non-FTA countries.

According to Southern LNG’s application, exports are “projected to occur during the third quarter of 2018 and not later than six months thereafter.”

In October 2016, two Kinder Morgan units, Elba Liquefaction Company and Southern LNG Company to begin work on the Elba liquefaction project.

The project includes ten movable modular liquefaction system (MMLS) units with a total liquefaction capacity of 2.5 mtpa of LNG.

As of January 2018, Elba Liquefaction Company was installing piping spool pieces, raceway and cable, and fire and gas detectors for the first MMLS unit and receiving module and component deliveries for MMLS units 2 and 3.

The first MMLS unit is nearing completion and is expected to commence operations in mid-2018, with remaining units to start operations sequentially.

Southern LNG Company noted in its request that the source of gas supplies to be utilized for the commissioning of the liquefaction project is unknown but is most likely to be procured in the U.S. natural gas market.

The company is also considering the possibility of utilizing LNG that has already been imported and is in the storage tanks of the terminal for the commissioning process. This would depend on the timing of the need and the availability of pipeline capacity and market conditions.

Following the completion of the liquefaction project, the terminal at Elba Island will have the capability to both import and export LNG supplies.