U.S. regulators approved Kinder Morgan’s request to start production of LNG at the first plant of its new export facility, a year after it had been originally due to begin operations, filings showed this week.
The Elba Island facility is one of half a dozen in the country beginning to produce LNG for export, contributing to soaring supplies of fuel globally which has upended gas markets in Europe and Asia.
It is also quite unusual among U.S. facilities, employing modular technology to build much smaller “trains”, or plants, than its peers at 0.3 million tonnes a year (mtpa) capacity compared to around 5 mtpa for other U.S. trains.
The facility has experienced start-up problems that have led to periodic delays since late last year as it tweaked the setup of its 10 trains. In total, they will produce around 3 mtpa when up and running.
The Federal Energy Regulatory Commission (FERC) approved its request to “commence service for liquefaction and export activities” at the first train in a filing dated Sept. 30.
The U.S. has exported 26 mtpa of LNG so far this year, exceeding its 2018 total of 22 mtpa and equaling the 2018 total of the world’s No. 3 exporter, Malaysia.
EOG Resources plans to test about six oil and gas prospects this year with a focus on adding premium drilling locations while still lowering well costs.
Occidental Petroleum has been aggressively cutting costs by laying off staff and selling assets to pay down its $38.54 billion debt pile following its acquisition of Anadarko Petroleum.
The Houston-based company’s total production rose 11% to 78.2 million barrels of oil equivalent per day for the quarter ended Dec. 31.