Kinder Morgan sells 25% stake in Elba Liquefaction Company
Transactions - SEPTEMBER 28, 2022

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Kinder Morgan sells 25% stake in Elba Liquefaction Company

by Kali Persall

Kinder Morgan has sold a 25.5 percent equity interest in Georgia-based Elba Liquefaction Company (ELC) to an undisclosed financial buyer for $565 million.

The Elba Liquefaction facility includes 10 modular liquefaction units for a total capacity of 2.5 million tons per year of liquified natural gas, the equivalent of 0.35 billion cubic feet (Bcf) per day. The facility is supported by a 20-year contract with Shell LNG, which is subscribed to 100 percent of the liquefaction capacity.

The proceeds of the sale will reduce short-term debt and create additional capacity for attractive investments, including opportunistic share repurchases. The value of the equity interest implies an enterprise value of $2.3 billion for ELC.

Upon closing, Kinder Morgan and the undisclosed financial buyer will each hold a 25.5 percent interest, and Blackstone Credit will continue to hold a 49 percent interest in ELC.

“We are pleased to welcome a new partner into the ELC joint v

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