By Jessica Corso
San Antonio Business Bureau
The future Annova LNG liquefaction facility at the Port of Brownsville will be fed with gas from an Enbridge Inc. pipeline, according to a Wednesday news release.
Enbridge's (NYSE: ENB) Valley Crossing Pipeline, which runs from the gas hub of Agua Dulce to just east of Brownsville, will be extended nine miles to supply Annova with the gas needed to produce 6.5 metric tons of LNG per year, according to a statement by Annova.
“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 U.S. LNG facilities,” Annova CEO Omar Khayum said in the statement.
The 20-year agreement, which was signed on Wednesday, could mean that Enbridge will start supplying gas to the facility once it begins commercial operations in 2025.
Enbridge, Canada's largest pipeline operator, signed an agreement in September with NextDecade Corp. (NASDAQ: NEXT) to jointly construct a pipeline that feeds gas into NextDecade's proposed export terminal at the port. In the same month, The Houston Chronicle reported that Enbridge bought a stake in the Annova terminal.
Annova faces multiple hurdles before it becomes commercially viable. Like the other two LNG export plants proposed at the port, the company has yet to break ground on its project even though it awarded a construction contract to investors Black and Veach Corp. and Kiewit Corp. in Oct. 2018. The LNG company is majority owned by Exelon Corp. (NYSE: EXC).
Environmentalists, government officials and representatives for the local fishing industry are opposing construction of the terminals, which could turn Brownsville into a major oil and gas export hub. All three projects are facing challenges to their U.S. Federal Energy Regulatory Commission permits and the Sierra Club has promised to take them to court, if necessary, to stop the plants' construction.
The future Annova LNG liquefaction facility at the Port of Brownsville will be fed with gas from an Enbridge Inc. pipeline, according to a Wednesday news release.
Enbridge's (NYSE: ENB) Valley Crossing Pipeline, which runs from the gas hub of Agua Dulce to just east of Brownsville, will be extended nine miles to supply Annova with the gas needed to produce 6.5 metric tons of LNG per year, according to a statement by Annova.
“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 U.S. LNG facilities,” Annova CEO Omar Khayum said in the statement.
The 20-year agreement, which was signed on Wednesday, could mean that Enbridge will start supplying gas to the facility once it begins commercial operations in 2025.
Enbridge, Canada's largest pipeline operator, signed an agreement in September with NextDecade Corp. (NASDAQ: NEXT) to jointly construct a pipeline that feeds gas into NextDecade's proposed export terminal at the port. In the same month, The Houston Chronicle reported that Enbridge bought a stake in the Annova terminal.
Annova faces multiple hurdles before it becomes commercially viable. Like the other two LNG export plants proposed at the port, the company has yet to break ground on its project even though it awarded a construction contract to investors Black and Veach Corp. and Kiewit Corp. in Oct. 2018. The LNG company is majority owned by Exelon Corp. (NYSE: EXC).
Environmentalists, government officials and representatives for the local fishing industry are opposing construction of the terminals, which could turn Brownsville into a major oil and gas export hub. All three projects are facing challenges to their U.S. Federal Energy Regulatory Commission permits and the Sierra Club has promised to take them to court, if necessary, to stop the plants' construction.
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1 comment:
Seems like we're getting from everywhere when's this gonna stop?
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