Annova LNG Secures Electric Transmission Services

Agreement with South Texas Electric Cooperative solidifies electric transmission needs for length of project

BROWNSVILLE, TX — Annova LNG has signed a facilities agreement with the South Texas Electric Cooperative (STEC) for 405 MW, representing the total electric transmission needs for the 6.0 MTPA LNG export project.

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

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.”

Annova LNG currently estimates commercial operations to begin in 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 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.

About South Texas Electric Cooperative

South Texas Electric Cooperative (STEC) is a cutting-edge Generation and Transmission Cooperative supplying wholesale electric services to eight member distribution cooperatives. Those member cooperatives serve over 280,000 consumers in 42 south Texas counties. STEC provides positive economic impacts and works for the sustainable development of its surrounding communities. The cooperative employs 283 individuals at four locations within the state, including the headquarters facility in Nursery and other locations in Pearsall, Donna, and Edinburg. In 2017, total operating revenues and wages created by the cooperative were $495 million and $26.7 million respectively. Additionally, STEC owns approximately $1.5 billion in assets and contributes over $8.5 million in property taxes annually. STEC also supports various qualifying non-profit organizations in its geographic service areas by offering charitable donations and paid time for its employees to volunteer with these organizations. In 2017, STEC donated over $64,000 and 1,475 hours of paid time through this program.

Media Contact

Christina Pratt
Annova LNG Communications
info@annovalng.com

Sign Up for Updates

Receive email updates from Annova LNG about the Brownsville project.

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.