Annova LNG Project Advances with Resumption of USACE Permit Review

Project takes another step forward toward commercialization

BROWNSVILLE, TX — The U.S. Army Corps of Engineers (USACE) resumed its Section 10/404 Department of Army permitting process for Annova LNG, in response to the project’s timely data request submission. This resumption supports the timeline to receive federal approval by July 2019 as indicated in the August release of the FERC Notice of Schedule for the Annova LNG project.

USACE now has the requisite information to conduct a detailed review of the environmental impacts of an intrastate natural gas pipeline necessary to deliver feed gas to the project site, along with the Annova LNG terminal’s impacts, as part of its National Environmental Policy Act (NEPA) process. Annova LNG is in the process of securing one billion cubic feet per day (1 Bcf/day) of firm natural gas transportation from Agua Dulce to the Project site, representing the total natural gas needs for the 6.0 MTPA LNG export project.

“Recent announcements to build 2 Bcf/day of firm transportation natural gas pipeline supply capacity deliverable to Agua Dulce make South Texas a quickly evolving, low-cost supply hub with ready access to Waha, Katy and Houston Ship Channel natural gas pricing hubs,” said Omar Khayum, Annova LNG CEO.

“With firm natural gas transportation from Agua Dulce, Annova LNG will be able to secure access to a diversified, low-cost feed gas supply,” said Khayum.

Agua Dulce is the primary gas trading hub for the South Texas region. Located near the heart of the Eagle Ford producing region, the Agua Dulce gas trading hub provides connectivity to more than ten existing interstate and intrastate pipelines that can access current gas production from the Permian Basin and other regional gas producing basins.

“Resumption of the USACE permitting process that supports the FERC timeline, and securing firm transportation for the full natural gas needs of the project, strengthens our project’s position ahead of the competition,” said Khayum.

Annova LNG commercial operations is scheduled for 2024.

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

Jimmy Porch
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.