Blackstone takes 49 percent stake in Elba Island LNG export plant

A unit of US-based private equity firm Blackstone has purchased a stake from compatriot EIG Global Energy Partners in the 2.5 mtpa Elba Island LNG export plant in Georgia.

Blackstone Credit bought a 49 percent stake in the liquefaction and export plant while US energy company Kinder Morgan will remain as the operator and retain its 51 percent ownership.

In a statement issued on Friday, Blackstone did not reveal the price tag of the deal which comes at a time of a big demand for US LNG, particularly from Europe.

Back in October 2020, Blackstone sold its 42 percent stake in Cheniere’s limited partnership for $7 billion. Cheniere formed the partnership to develop the Sabine Pass terminal, currently the largest US LNG export facility out of seven operational plants.

Elba Island began full commercial operations in August 2020. The nearly $2 billion LNG plant features 10 movable modular liquefaction units.

These units are capable of producing about 2.5 mtpa of LNG or some 350 million cubic feet per day of natural gas.

The export project has a 20-year contract with LNG giant Shell.

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