LNG

The US Annova liquefied natural gas export project planned for the south bank of the Brownsville Ship Channel in Texas, and whose owners include Chicago-based power company Exelon Corp., has signed a facilities agreement to book all the transmission needs of the plant.

Annova’s accord is with the South Texas Electrical Cooperative (STEC) for 405 megawatts of power for the export plant with capacity to produce 6.0 million tonnes per annum of LNG.

“The Annova LNG project has a significantly lower environmental impact on the Rio Grande Valley than other proposed projects due to its use of electrical power instead of natural gas to drive its liquefaction compressors,” said Omar Khayum, Annova Chief Executive.

“We are confident that through the executed agreement, STEC will provide all electric transmission services required for safe and reliable operation of the project,” added Khayum.

Annova added that Magic Valley Electric Cooperative, a member of STEC, will be the sole provider of electric energy to power the facility.

“This agreement is yet another example of Annova LNG’s momentum,” said Khayum.

“The project continues to make significant progress as we begin 2019,” he stated, noting that commercial operations are scheduled to begin in 2024.

Annova received its draft environmental impact statement in December 2018 prepared by the Federal Energy Regulatory Commission.

The project company added that it had modified its layout to create a 185-acre environmental conservation corridor and avoid impacting over 100 acres of wetlands.

Its environmental plans would also restore tidal exchange and estuarine habitats lost when the Brownsville Ship Channel and State Highway 48 were constructed.

The joint venture proposes the construction of six small-scale liquefaction Trains as well as an interconnected pipeline and marine export facilities.

Annova said it would support an average of around 700 on-site jobs over a four-year period and thereafter would need about 165 permanent full-time workers to run and manage the plant.

The company said it expected to receive its Final Environmental Impact Statement in the second quarter of 2019.

The joint venture’s equity owners in addition to Exelon are US engineering, processing and equipment company Black & Veatch of Kansas and construction firm Kiewit Corp., based in Omaha, Nebraska.

The company said it was in the process of securing one billion cubic feet per day of firm natural gas transportation from Agua Dulce Hub in south Texas to the project site.