Kinder Morgan has divested 49% of interest in the ELC (Elba Liquefaction Company) to EIG Global Energy Partners.
The transaction amounted US$385m and the deal also includes the payment of US$170m in excess of capital expenditure taking into consideration the value Kinder Morgan creates in the project. EIG Global Energy Partners has agreed to fund its share of capital expenditures required for the construction and the commissioning of the facilities.
The Elba Liquefaction Plant project value is estimated around US$1.3bn. The project will be built on the site of the existing 18 bcm/year Elba Island regasification terminal and will consist of ten liquefaction units with a combined capacity of 2.5 Mt/year of LNG for export; the first unit is expected to be commissioned in the second quarter of 2018 and the remaining nine units by the end of 2018.
The project is supported by a 20-year contract with Shell.