Kinder Morgan Inc.’s (KMI’s) Texas Intrastate Pipelines group entered into a 20-year firm transportation services agreement with SK E&S LNG LLC, a subsidiary of SK E&S Co. Ltd. Under the agreement, KMI will invest more than $150 million to provide more than 320,000 dekatherms per day of firm gas transportation services to support SK LNG’s Train III LNG export capacity at Quintana Island, Texas. The train is part of Freeport LNG Development’s Freeport LNG export facility, which will liquefy up to 13.2 million tonnes per annum once fully operational. Startup is expected in third-quarter 2019.
KMI will build and operate about 40 miles of pipeline extending from its Kinder Morgan Tejas mainline to an interconnection point with Freeport LNG’s pipeline in Stratton Ridge, Texas. KMI will also expand and construct additional compression on its existing Kinder Morgan Texas and Kinder Morgan Tejas systems. The agreement requires expansion of the KMI intrastate system by more than 1 billion cubic feet per day and will provide additional capacity to the Freeport and Chocolate Bayou areas.
The agreements are subject to certain conditions, including a final investment decision to construct the Freeport LNG Train III Liquefaction Project.
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