Kinder Morgan today announced it would invest $150 million to build a pipeline that will deliver gas to a liquefaction train at Freeport LNG on Quintana Island in Texas. Kinder Morgan entered into a 20-year agreement with SK E&S LNG to transport 320,000 dekatherms per day of natural gas to Train III, which is expected to start up in 2019.
The 40-mile pipeline will extend from Kinder Morgan’s existing Kinder Morgan Tejas mainline to an interconnection point with Freeport LNG’s pipeline in Stratton Ridge, Texas. Kinder Morgan will also build additional compression on its Kinder Morgan Texas and Kinder Morgan Tejas lines when the liquefaction train begins service.
SK E&S LNG — a subsidiary of SK E&S Co. of South Korea — has a 20-year liquefaction tolling agreement with Freeport LNG that will commence upon startup of Train III.
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