Annova LNG Receives Positive FERC Final Environmental Impact Statement

FERC recognizes proactive mitigation efforts

BROWNSVILLE, TX — Today Annova LNG received its final Environmental Impact Statement (EIS) from the U.S. Federal Energy Regulatory Commission (FERC), a significant milestone in the development process for the Annova LNG Brownsville Project.

“We appreciate the extensive reviews conducted by FERC and the cooperating agencies,” said Omar Khayum, CEO, Annova LNG. “We are pleased they recognize our proactive approach to minimizing our impact on the environment, including investing in mitigation that is above and beyond what is required by local, state and federal regulations.”

The cooperating agencies included U.S. Army Corps of Engineers, National Park Service, U.S. Environmental Protection Agency, U.S. Fish and Wildlife Service, U.S. Coast Guard, U.S. Department of Energy, U.S. Department of Transportation, Pipeline and Hazardous Materials Safety Administration, National Oceanic and Atmospheric Administration, and Federal Aviation Administration. Annova LNG also consulted with the Texas Parks and Wildlife Department and the Texas Historical Commission throughout the review process.

The FERC EIS said in reference to the project’s overall environmental impact, “We conclude that impacts on the environment from the proposed Project would be reduced to less than significant levels with the implementation of Annova’s proposed impact avoidance, minimization, and mitigation measures and the additional measures recommended by FERC staff.”

“From moving the entire site to accommodate an ocelot corridor, to using electric motor-driven equipment to minimize air emissions, Annova LNG has demonstrated its continued commitment to operating the Annova LNG project in an environmentally responsible manner,” Khayum added.

Annova LNG has modified its layout to create a 185-acre environmental conservation corridor and avoid impacting over 100 acres of wetlands, designed with ocelots in mind. In addition, Annova LNG will restore and enhance over 250 acres of wetlands and shallow water habitat. These 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.

“We also recognize FERC’s tremendous efforts to streamline the LNG review process, as FERC maintained its published schedule for the project, despite reopening the public comment period to allow additional time due to the federal government shutdown,” said Khayum. “This milestone is a significant contributor to the commercial development of the Annova LNG project.”

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 liquefied 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 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.