Elba

Pipeline deliveries to U.S. liquefied natural gas (LNG) export terminals spiked last week, surpassing 8 Bcf/d as Kinder Morgan Inc.’s Elba Island facility in Georgia sent its first cargo overseas.

Affiliates of Kinder Morgan Inc. (KMI) have been cleared by FERC to begin commissioning fuel for the Elba Island LNG Terminal near Savannah, GA.

A plan to turn Kinder Morgan Inc.’s natural gas import facility in Mississippi into an export terminal could have some adverse environmental impacts, but they could be avoided or reduced to less-than-significant levels with mitigation, FERC staff said Thursday.

Kinder Morgan Inc. (KMI) may be looking to modify its existing Gulf Coast liquefied natural gas (LNG) import terminal in Jackson, MS, to accommodate exports, but the midstream operator knows its “very low risk and high reward opportunity” in the export space is through the massive upstream gas transportation and storage network that serves third-party facilities, CEO Steve Kean said.

Vast supplies of low-cost natural gas have put the United States on track to becoming the largest exporter of liquefied natural gas (LNG) within the decade. But before reaching that level of global dominance, a handful of export facilities due to begin service over the next year will provide some much-needed relief to producers in key unconventional plays and serve as a test for a gas market contending with new demand.

In a bullish outlook for the growth of U.S. liquefied natural gas (LNG) exports by 2024, an energy analyst with the Mizuho Securities LLC’s energy research group said the expansion will include both small-scale and mega projects.

Elba Liquefaction Co. LLC and Southern LNG Co. LLC, both units of Kinder Morgan Inc., haveasked the Federal Energy Regulatory Commission for permission to begin installing by March 10 “Movable Modular Liquefaction System” (MMLS) units at their liquefied natural gas (LNG) liquefaction and export project at the existing Elba Island LNGterminal near Savannah, GA. The Commissionapproved the project last June. Last December the projectreceived non-free trade agreement (FTA) country export approval. The project is supported by a 20-year contract with Royal Dutch Shell plc. The terminal ultimately will have the capability to both export and import LNG. FTA exports have also been previously authorized by the U.S. Department of Energy. “MMLS combines Shell’s tradition of innovation and technology advances with design flexibility that enables construction within the existing site at Elba Island plant,” the companies said on the project’s webpage.

The Federal Energy Regulatory Commission (FERC) has granted a request from Elba Express Co. LLC(EEC) to place into service the EEC North Meter Station and the EEC to Southern Natural Gas Co. LLC (SNG) Meter Station associated with the EEC Modification Project [C14-115] in Effingham and Chatham counties in Georgia (see Daily GPI,June 2). “We find that EEC has adequately stabilized areas disturbed by construction and that restoration is proceeding satisfactorily,” FERC said. In June, EEC and SNG received FERC authorization for the $2 billion Elba Liquefaction Project [CP14-103], and received FERC certificates for the EEC Modification Project and SNG Zone 3 Expansion Project [CP14-493]. Together, the projects would cost about $306 million and include additional compression and related work for north-to-south capacity expansions on Elba Express Pipeline that will supply additional gas to industrials and utilities in Georgia and Florida and to Elba Island for liquefaction.

FERC has approved Kinder Morgan Inc.’s (KMI) plan to add liquefaction and export capability to the existing Elba Island LNG Terminal near Savannah, GA, as well as make modifications to existing pipelines in support of the project.