Elba Island starts to export LNG

Thursday, 17 October 2019
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Commercial services have started on the first of 10 liquefaction units of the Elba Liquefaction Co (ELC), a joint venture between Kinder Morgan and EIG Global Energy Partners (EIG). 

Previously an LNG import terminal, Elba Island’s facility is now also able to produce LNG for export. With the first unit in service, the company is now earning about 70% 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 US 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, Kinder Morgan said.

Once in full development, Elba Island is expected to have a total capacity of around 2.5 mill tonnes per year of LNG for export.

The project is supported by a 20-year contract with Shell, which will take the whole of its liquefaction capacity.

Shell's chartered LNGC ‘Gemmata’ has been anchored off the coast of the US state of Georgia since 12th October in ballast, indicating that it is likely to pick up the first cargo from Elba, cFlow, S&P Global Platts trade flow software, showed on Monday.

A Kinder Morgan spokeswoman told Platts on Monday that ‘Gemmata’ was berthed at Elba.

According to reports from Russia, in late September the federal government approved the establishment of three new reloading points located in a bay south of the Kildin island in the Murmansk Oblast.

This facility will be able to handle two laden LNGCs from Yamal simultaneously.

Rosmorport reportedly said that two of the moorings will handle LNGCs, while the third will handle a service ship.

Each of the mooring areas will include eight buoys attached to the sea bottom by steel and concrete anchors.

The federal port authority will be responsible for LNGC escorts. It was also believed that a number of the gas ships will use nearby Kola Bay.

The lion’s share of Yamal’s 15 new Arc7s will use the reloading facility in Kildin to transfer cargo to conventional LNGCs for onward shipment.

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