Annova LNG project signs deal to line up Texas feed-gas

Tuesday, 28 January 2020
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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 an accord to arrange feed-gas deliveries from the Agua Dulce hub in Texas.

The Annova project is expected to ship around 6.95 million tonnes per annum from its proposed liquefaction and plant planed as part of the second wave build-out for exports.

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 signed a precedent agreement with Enbridge Inc. affiliate, Valley Crossing Pipeline, LLC (VCP), to providing transportation for its total feed-gas requirements.

The project’s investment-grade equity owners including Exelon, Black & Veatch Corp. of Kansas and Kiewit Corp. of Nebraska.

Annova’s strategy is to offer volumes to mid-scale customers who are seeking to buy increments of 1.0 MTPA.

The accord proposes that the existing Valley Crossing Pipeline from Agua Dulce to Brownsville will be expanded along with the construction of an nine-mile lateral connecting VCP to Annova liquefaction plant.

“Annova LNG’s firm transportation arrangements will ensure security of supply and access to the most diversified, low-cost feed gas of any of the US LNG facilities,” said Omar Khayum, Chief Executive of Annova.

“We will be the most sustainable and reliable provider of LNG from the United States,” added Khayum.

The LNG facility also plans to use electric-driven compressor engines and source its electricity through 100 percent carbon-free renewable energy resources.

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