Energy giant Kinder Morgan moved one step closer this week to large-scale export of natural gas through a Savannah terminal.
The Federal Energy Regulatory Commission approved the $2 billion project to build 10 gas liquefaction units to ready gas flowing down the main East Coast trunk pipeline near Atlanta to the Elba Island terminal for export. Construction is scheduled for completion in 2018.
Elba Island, about 5 miles below Savannah’s historic district, is currently configured for imports. But the nation’s glut of natural gas, due to fracking, has led Kinder Morgan and other gas companies to seek export approvals.
Gas companies currently can export to countries with free-trade agreements (FTA) with the United States, like Canada and Mexico. Roughly three dozen terminals, including Elba Island, seek federal permission to export to non-FTA countries, mainly in Europe.
Kinder Morgan awaits U.S. Department of Energy approval to export to non-FTA countries.
“The Elba Liquefaction Project stands to be a positive factor in the overall balance of trade between the U.S. and other countries, as well as generate significant local and state benefits for the Savannah area and Georgia,” Kinder Morgan spokesman Richard Wheatley said in a statement.
Environmental groups, led by the Sierra Club, oppose the project, citing increased greenhouse gas emissions due to increased fracking of natural gas.
