Kinder Morgan agrees to buy remaining share of Elba Liquefaction Company from Shell
Kinder Morgan, North America’s largest energy infrastructure company, on Wednesday announced it has an agreement to buy all of Shell’s 49 per cent equity interest in Elba Liquefaction Company (ELC), bringing its own share to 100 per cent.
With an LNG (liquefied natural gas) boom anticipated in coming years, the US government’s Federal Energy Regulatory Commission (FERC) has been approving LNG terminal developments around its shoreline, especially the Gulf of Mexico and the Atlantic coast.
ELC is owner of the Elba Liquefaction Project, which is proposed to be constructed and operated at the existing Elba Island LNG Terminal near Savannah, Georgia.
In its press release on the purchase, Houston-based Kinder Morgan said its “expected incremental investment resulting from this transaction is approximately $630 million, bringing its total incremental investment in all the liquefaction and terminal facilities at Elba Island to approximately $2.1 billion.”
Subject to regulatory approvals, construction could begin in fourth quarter of 2015, with initial production expected to occur in late 2017.
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- July 16, 2015
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