Kinder Morgan says US LNG exports and pipeline gas demand from Mexico set for substantial growth
Kinder Morgan Inc. (KMI), the leading US pipeline feed-gas company for liquefied natural gas plants and a key energy infrastructure operator and developer, posted solid first-quarter earnings and forecast a surge through 2030 of LNG exports and pipeline gas deliveries to Mexico.
US pipeline giant Kinder Morgan reports jump in earnings and plans measures to meet LNG export surge
Kinder Morgan Inc. (KMI) the leading US pipeline feed-gas company for liquefied natural gas plants and a key energy infrastructure developer, reported an increase in fourth-quarter net income and planned to expand its network to meet soaring LNG feed-gas demand.
Kinder Morgan sells half of majority stake in Elba Island LNG plant for $565M to value facility at $2.3Bln
Kinder Morgan Inc., the US natural gas pipeline giant and a shareholder in the Elba Island LNG export plant in Georgia, has sold part of its stake in the liquefaction plant.
KMI said it sold a 25.5 percent equity interest in Elba Liquefaction Company (ELC) to “an undisclosed financial buyer” for around $565 million.
After the close of the transaction the Houston, Texas-based company would own 25.5 percent of Elba Island, the same as the mystery buyer.
New York-based Blackstone Credit, a hedge fund and investment arm of the Blackstone Group, would continue to hold a 49 percent interest in ELC, which is now the majority holding.
KMI said the proceeds from the sale would reduce short-term debt and create additional capacity for “attractive investments” including “opportunistic” share repurchases.
It added that the value of the equity interest implied an enterprise value of ELC amounting to $2.3 billion, which is approximately 13 times 2022 gross earnings.
The ELC joint venture was formed in 2017 to construct and own the 10 modular liquefaction units in operation at Elba Island and KMI would continue to operate the facility.
The export plant is supported by a 20-year contract with Shell LNG North America for 100 percent of the liquefaction capacity.
Critical asset
“We are pleased to welcome a new partner into the ELC joint venture,” said KMI’s Interstate Natural Gas President Kimberly Watson.
“Recent geopolitical events have proven how critical liquefied natural gas infrastructure is to meeting global energy demand,” added Watson.
“We believe this investment further shows the value of LNG and demonstrates the important role it will play for decades to come,” she stated.
The Elba Liquefaction facility is in Chatham County in Georgia, near the city of Savannah, and produces around 2.5 million tonnes per annum of LNG from its 10 Trains using Shell processing technology.
In the operational plan, ELC then delivers the LNG to Southern LNG Co. (SLNG) for export.
KMI owns 100 percent of SLNG, which owns and operates the Elba Island LNG Terminal, including the LNG storage tanks and the ship dock for import and export.
The statement added that Bracewell LLP served as legal advisor to KMI for the transaction.
US LNG data shows price trends as China is top destination and India overtakes UK in total cargoes
The US Department of Energy has just published its latest liquefied natural gas monthly export data showing rising prices for the six plants and with China being the top monthly destination, while India overtook the UK into sixth place for overall total shipments received.
US natural gas pipeline and LNG project player Kinder Morgan signs $1.22Bln deal for storage and pipelines
Kinder Morgan, the US pipeline giant and key shareholder in the LNG export plant in Georgia and the Gulf LNG project in Mississippi, has agreed on the $1.22 billion acquisition of Stagecoach Gas Services, a natural gas pipeline and storage joint venture with assets serving the Marcellus Shale basin and northeast utilities.
US-flagged LNG bunkering barge in place at Port Canaveral for re-launch of cruise industry in Florida
Quality LNG Transport, a service company founded by New Orleans-based Harvey Gulf International Marine, said its LNG bunkering barge “Q-LNG 4000” had arrived in Port Canaveral in Florida under charter to Shell to begin fuelling operations in the months ahead for Carnival Corp. cruises.
US LNG data shows UK overtook India in top list of cargo recipients while Brazil jumped past France
The US Department of Energy has just published its latest liquefied natural gas export data with price differentials for the various plants showing that the Corpus Christi LNG facility in Texas was the only one with year-to-date cargo prices under $5.00 per million British thermal units, while all the plants except for Sabine Pass had prices over $6.00 per MMBtu in the reporting month.
Belgium's Fluxys adds Brazilian gas operator to stakes in Dunkirk and Zeebrugge LNG and Adriatic pipeline
Belgian company Fluxys, whose assets include the Zeebrugge LNG import terminal and a stake in Dunkirk LNG in France as well as the Trans-Adriatic Pipeline, has agreed to buy a minority stake from the equity fund, EIG Global Energy Partners (EIG), in a gas system operator in Brazil.
The deal is for part of the Brazilian utility, Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG), which is the owner and operator of a 2,600-kilometres pipeline system in the southern part of the South American country.
Fluxys said the completion of the equity transfer was expected to take another two months.
Both companies said they would also explore further strategic cooperation in Brazil’s gas infrastructure market.
“Fluxys is looking forward to become an industrial partner in TBG as it is a key energy infrastructure for Brazil and the company’s management and workforce are highly experienced,” stated Fluxys.
The Fluxys infrastructure group employs 1,200 people in Europe in its growing gas transmission and storage and LNG terminal businesses.
Its associated companies across Europe operate 9,000km of pipeline and its assets import 29 billion cubic metres of regasified LNG.
It is also a shareholder in the Trans-Adriatic Pipeline, an 878-kilometres transportation system bringing Caspian natural gas from Azerbaijan to Greece, Albania, via the Adriatic Sea and Italy.
“TBG is an excellent fit for Fluxys in its strategy to complement its development in Europe with industrial partnerships in gas infrastructure outside Europe in stable markets with growth opportunities,” said Fluxys.
“Brazil in this respect has high energy demand growth prospects and natural gas allows it to meet this need jointly with renewable energy sources,” the company added.
The Belgian grid operator said the partnership with TBG was an important step in the roll-out of Fluxys’ growth strategy outside Europe.
“Fluxys will open a branch in Brazil shortly for managing its Brazilian interests as well as its further business development in the country and the wider Latin America region,” Fluxys stated.
Shell carrier that lifted first Cove Point cargo was moored at Elba Island plant in Georgia
The Royal Dutch Shell LNG carrier “Gemmata” with 138,100 cubic metres capacity was moored at the Elba Island LNG export plant near Savannah in the state of Georgia, the sixth US export plant to come on stream since 2016.
Kinder Morgan halts advanced commissioning of Elba Island LNG in Georgia as hurricane passes
Kinder Morgan, the US pipeline and terminals company, evacuated its Elba Island LNG export plant near Savannah in Georgia and its ongoing commissioning activities as Hurricane Dorian moved along the East Coast.
