Elba Island LNG export project delayed
Kinder Morgan announced during the company’s second-quarter results conference call that the start-up of its Elba Island liquefied natural gas (LNG) Export project has been pushed back.
Initial liquefaction units are now expected to be in service in in the fourth quarter of 2018, with final units coming on line by late 2019.
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| Map Source: EWA |
“The reason for the delay right now is multifactor. I mean, there was a delay in getting the units assembled and then delivered to the site. And we had some construction delays as well,” Rich Kinder, Executive Chairman of Kinder Morgan said during the call. “And we think we have the issues identified and enhanced, but it works—we definitely are experiencing one-quarter delay.”
Kinder said the company has been active with the project’s EPC contractor, IHI E&C in addressing the delays. He also said the project is under budget and expected to be very economic for the company and its partners.
The facilities associated with the Elba Liquefaction Project will be situated at the Elba Terminal on an 840-acre island known as Elba Island. The current Elba Terminal is an import facility capable of importing and regasifying foreign-sourced LNG. The Elba Liquefaction Project will be constructed in two phases: (1) Phase I will include installation of 6 liquefaction units equal to an output capacity of 210 MMcfpd and modifications to the existing Elba Terminal to allow for export and (2) Phase II will include installation of up to 4 liquefaction units equal to an output capacity of 140 MMcfpd.
The Elba Liquefaction Project will use Shell’s innovative small-scale liquefaction units, which will be integrated into the existing Elba Terminal and enable rapid construction compared to traditional large-scale plants.
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