Annova LNG Achieves Significant Regulatory Milestone

FERC issues Draft Environmental Impact Statement

BROWNSVILLE, TX — Today Annova LNG received its Draft Environmental Impact Statement (DEIS) prepared by the Federal Energy Regulatory Commission (FERC) for the Annova LNG Brownsville Project (Project). The issuance aligns with the estimated schedule the agency outlined in August and propels the project through another significant milestone.

The FERC DEIS said in reference to the project’s overall environmental impact, “with the mitigation measures recommended in the EIS and Annova’s proposed mitigation measures, impacts in the project area would be avoided or minimized and would not be significant.”

“Annova LNG is pleased FERC has acknowledged our proactive approach towards minimizing and offsetting the project’s environmental impacts,” said Omar Khayum, Annova LNG CEO. “Annova LNG is investing in electric motor-driven equipment to minimize air emissions, restoring former wetlands in the project vicinity to more than offset wetlands impacts, and actively contributing to efforts to protect the ocelot and other wildlife, including establishing a wildlife corridor on the project site.”

The project has modified its layout to create a 185-acre environmental conservation corridor and avoid impacting over 100 acres of wetlands. Further, the Project proposes to restore and enhance over 250 acres of wetlands and shallow water habitat. These proposed efforts would restore tidal exchange and estuarine habitat lost when the Brownsville Ship Channel and State Highway 48 were constructed and supplement ongoing efforts to restore critical estuarine habitat in the area.

“Annova LNG’s up-front actions demonstrate our commitment to the environment and to the community in which we plan to be a productive member for years to come,” said Khayum. “We continue to make steady progress,” said Khayum. “In just the past few months, Annova LNG has received its FERC Notice of Schedule and FERC Draft EIS; expanded the team of world-class equity owners to include Black & Veatch Corporation and Kiewit Corporation, in addition to Exelon Corporation; and the U.S. Army Corps of Engineers has resumed its permitting process.”

According to the estimated schedule FERC outlined in August, Annova LNG should receive its Final Environmental Impact Statement in the second quarter of 2019. Annova LNG estimates commercial operations to begin in 2024.

“This Draft EIS follows an extensive FERC review of Annova LNG’s application, coordination with stakeholder regulatory agencies, and hundreds of questions answered by our team of engineers,” said Khayum. “Given our efforts to minimize and mitigate our environmental impacts, including the use of electric motor-driven equipment that reduce regional air emissions significantly, we are confident that we have a project that meets or exceeds federal and state regulations.”

Annova LNG would support an average of approximately 700 on-site jobs over a four-year period. Upon completion of the facility, Annova LNG would employ approximately 165 permanent full-time workers to run and manage the plant.

About Annova LNG

Annova LNG is a 6.0 MTPA liquified natural gas export facility under development at the Port of Brownsville, Texas. With an experienced leadership team and investment-grade equity owners including Exelon Corporation, Black & Veatch Corporation and Kiewit Corporation, Annova LNG is expected to be a leader among second wave U.S. LNG projects by catering to midscale LNG customers who are buying in 0.5 to 1.0 MTPA increments. The facility would diversify the Brownsville and the Rio Grande Valley economy and provide a much-needed boost by creating thousands of direct and indirect jobs from construction through operations.

Media Contact

Christina Pratt
Annova LNG Communications
info@annovalng.com

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The Port of Brownsville, a deep-water seaport located on the southernmost tip of Texas along the U.S.-Mexico border, opened for business 80 years ago in 1936. This port is the largest land-owning public port authority in the nation with approximately 40,000 acres. The Port of Brownsville has the opportunity to bring a new industry to the region that could provide jobs and an economic boost for decades to come. Exelon Generation, majority shareholder of Annova LNG, is exploring the potential of building a liquefied natural gas (LNG) transfer terminal at the Port of Brownsville.

Annova LNG currently has a lease option on a piece of property that sits on the south side of the 17-mile ship channel, approximately 8 miles inland. Although the ship channel was dredged in the middle of the last century, it was never fully developed. With the growing demand for natural gas in other parts of the world where it doesn’t exist, and with the abundance of it in South Texas, Annova LNG sees an opportunity to make the Port of Brownsville a global energy hub, which could provide a range of economic benefits to the local and regional economy.

If built, Annova LNG would invest nearly $3 billion in construction costs and support an average of 700 on-site jobs monthly over a four-year period. These are jobs that would be filled in the Rio Grande Valley.

Upon completion of the LNG plant, Annova LNG would employ approximately 165 permanent full-time workers to run and manage the plant. The average base salary would be $70,000 per year, with benefits raising total compensation to $110,000.

The economic impact would also help retain and expand other port businesses, as well as provide an indirect boost to other local businesses, such as engineering and design firms and construction subcontractors, suppliers and service providers. Given that 35 percent of residents in Cameron County live below the poverty level, the proposed Annova LNG project would be a much-needed economic boost.

Unlike other proposed LNG plants, Annova LNG would be a mid-scale processing and export facility that would serve a niche market of off-takers who need smaller LNG deliveries.

Exelon Generation and Annova LNG are committed to protecting the safety of Rio Grande Valley residents and the environment of the region. Natural gas is a much cleaner energy source than oil or coal and is used in stoves, hot water heaters and furnaces to heat homes. It is also now increasingly used as a fuel source to generate electricity and alternative-fueled vehicles. LNG is non-flammable, will not explode, and has no odor. In fact, LNG plants have operated for more than 50 years without an incident that affected public safety.

In order to be built, the Annova LNG project must meet standards for public safety and environmental protection established by numerous federal, state and local authorities, including the Federal Energy Regulatory Commission, U.S. Department of Energy, U.S. Army Corps of Engineers, U.S. Coast Guard, U.S. Fish and Wildlife Service, Texas Commission on Environmental Quality, Texas Fish and Wildlife Department and Cameron County. In fact, Annova LNG and its majority owner, Exelon, recently made a $40,000 donation to help protect and monitor endangered ocelots in South Texas. The donation was made to the Caesar Kleberg Wildlife Institute at Texas A&M University-Kingsville to help buy GPS tracking collars and other devices that will help monitor and research the ocelot population.

The Annova LNG project is a tremendous opportunity for Brownsville and the Rio Grande Valley, and residents should embrace it. For all the reasons detailed above, we urge FERC and other decision makers to expeditiously approve the Annova LNG project at the Port of Brownsville.