Startup activities are underway on the second and third units
HOUSTON--(BUSINESS WIRE)--Oct. 4, 2019--
The Elba Liquefaction Company, L.L.C. (ELC), a joint venture between Kinder Morgan, Inc. (NYSE: KMI) and EIG Global Energy Partners (EIG), announced today the commercial in service of the first of ten liquefaction units of the approximately $2 billion Elba Liquefaction project. Previously only a liquefied natural gas (LNG) import terminal, the Elba Island Liquefaction facility is now also able to produce LNG for export purposes. With the first unit in service, the company is now earning approximately 70 percent of the expected total daily revenue of the liquefaction units.
“This is a great milestone that was achieved with an exemplary safety record,” said Kinder Morgan Natural Gas South Region President Norman Holmes. “It is also an important step for the United States as the country becomes a key energy exporter.”
Progress is also being made on the remaining nine units. Startup activities are underway on the second and third units, the commissioning of units four through six is ongoing, and construction on the remaining units is largely complete. Under full development, the Elba Island Liquefaction facility is expected to have a total capacity of approximately 2.5 million tonnes per year of LNG for export, which is equivalent to approximately 350,000 Mcf per day of natural gas.
ELC, a KMI joint venture with EIG as a 49 percent partner, will own the liquefaction units and other ancillary equipment. Certain other facilities associated with the project are 100 percent owned by KMI. The project is supported by a 20-year contract with Shell, who is subscribed to 100 percent of the liquefaction capacity.
About Kinder Morgan, Inc.
Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America. Our mission is to provide energy transportation and storage services in a safe, efficient and environmentally responsible manner for the benefit of people, communities and businesses. Our vision is delivering energy to improve lives and create a better world. We own an interest in or operate approximately 84,000 miles of pipelines and 157 terminals. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and our terminals transload and store liquid commodities including petroleum products, ethanol and chemicals, and bulk products, including petroleum coke, metals and ores. For more information, please visit www.kindermorgan.com.
EIG is a leading institutional investor to the global energy sector with $23.3 billion under management as of June 30, 2019. EIG specializes in private investments in energy and energy-related infrastructure on a global basis. During its 37-year history, EIG has committed over $30.8 billion to the energy sector through more than 350 projects or companies in 36 countries on six continents. EIG’s clients include many of the leading pension plans, insurance companies, endowments, foundations and sovereign wealth funds in the U.S., Asia and Europe. EIG is headquartered in Washington, D.C. with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul. For additional information, please visit EIG’s website at www.eigpartners.com.
Important Information Relating to Forward-Looking Statements
This news release includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities and Exchange Act of 1934. Generally the words “expects,” “believes,” anticipates,” “plans,” “will,” “shall,” “estimates,” and similar expressions identify forward-looking statements, which are not historical in nature. Forward-looking statements in this news release include express or implied statements concerning the anticipated timing, capacity and benefits of the Elba Island Liquefaction facility and expectations regarding the U.S. as an energy exporter. Forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although KMI believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance as to when or if any such forward-looking statements will materialize or their ultimate impact on KMI’s operations or financial condition. Important factors that could cause actual results to differ materially from those expressed in or implied by these forward-looking statements include the risks and uncertainties described in KMI’s reports filed with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year-ended December 31, 2018 (under the headings “Risk Factors” and “Information Regarding Forward-Looking Statements” and elsewhere) and its subsequent reports, which are available through the SEC’s EDGAR system at www.sec.gov and on KMI’s website at ir.kindermorgan.com. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, KMI undertakes no obligation to update any forward-looking statement because of new information, future events or other factors. Because of these risks and uncertainties, readers should not place undue reliance on these forward-looking statements.
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Source: Kinder Morgan, Inc.
Kinder Morgan Contacts
EIG Global Energy Partners
Sard Verbinnen & Co.
Kelly Kimberly / Brandon Messina