First unit at Elba Island liquefaction project starts up

The first of 10 liquefaction units at the $2-billion Elba Liquefaction Facility at Elba Island near Savannah, Ga., is in service, said Elba Liquefaction Co. LLC (ELC). The 51-49 joint venture of Kinder Morgan Inc. and EIG Global Energy Partners, respectively, said progress is being made on the remaining nine units.

Previously only an LNG import terminal, the facility is now also able to produce LNG for export. With the first unit in service, the company is now earning 70% of the expected total daily revenue of the liquefaction units.

Start-up activities are under way on the second and third units, the commissioning of units four through six is ongoing, and construction on the remaining units is largely complete, ELC said. Under full development, the Elba project is expected to have a total capacity of 2.5 million tonnes/year of LNG for export.

ELC will own the liquefaction units and other ancillary equipment. Certain other facilities associated with the project are wholly owned by KMI. The project is supported by a 20-year contract with Royal Dutch Shell PLC, who is subscribed to 100% of the liquefaction capacity (OGJ Online, July 16, 2015).