Funds managed by EIG Global Energy Partners (EIG) have taken a 49 percent stake in Kinder Morgan’s Elba Liquefaction Company, LLC (ELC).
ELC will own 10 liquefaction units and other ancillary equipment to be constructed as part of the Elba Liquefaction Project at KM’s existing Southern LNG Company, LLC Elba Island LNG facility near Savannah, Georgia.
EIG has made an upfront cash payment of approximately US$385 million, consisting of reimbursement to KM for EIG’s 49 percent share of prior ELC capital expenditures, excluding capitalised interest, and a payment of approximately $170 million in excess of capital expenditures in consideration of the value created by KMI in developing the project to this stage.
EIG also agreed to fund its share of future capital expenditures necessary to complete construction and commissioning of the liquefaction facility, subject to the terms and conditions contained in the applicable agreements. The total project cost is estimated to be approximately $1.3 billion.
8th March 2017