U.S. Energy Department Approves LNG Exports From Kinder Morgan’s Mississippi Facility

The U.S. Energy Department authorized Kinder Morgan Inc. to export liquefied natural gas equivalent to up to 1.53 billion cubic feet per day from the proposed Gulf LNG Liquefaction Project, which will be built at the site of an existing import terminal in Mississippi, according to a July 31 press release.

The export permit comes within a month of the Federal Energy Regulatory Commission’s order, issued on July 16, authorizing construction and operation of the project. The Energy Department approval authorizes exports by vessel to any country with which the U.S. does not have a free trade agreement.

The project, proposed by Gulf LNG Liquefaction Company LLC, Gulf LNG Energy LLC, and Gulf LNG Pipeline LLC, would add natural gas liquefaction and export capabilities to the existing Gulf LNG import terminal in Jackson County, Mississippi. The facility would be able to produce up to 10.8 million tonnes of the super-chilled gas per year. The companies are each owned by Gulf LNG Holdings Group LLC, which is owned 50 percent by Southern Gulf LNG Company LLC, a subsidiary of Kinder Morgan Inc. and operator of the LNG terminal.

Including the Gulf LNG Project, the department has approved 34.52 billion cubic feet per day of exports in the form of LNG and compressed natural gas to non-free trade agreement countries. The agency said that 14 Bcf/d of the approved projects are in different stages of operation and construction. Four projects are operating, and two more are expected to come online this year.

U.S. LNG export capacity, currently at about 6 billion cubic feet per day, is projected to exceed 10 Bcf/d by the end of 2020. The Energy Information Administration projects average dry natural gas production rate to set new records, reaching 91.4 Bcf/d in 2019 and 92.8 Bcf/d in 2020.