Annova LNG signed a precedent agreement with Valley Crossing Pipeline LLC (VCP) on Jan. 22, providing transportation for Annova LNG’s total natural gas requirements at its 6.5 mtpa LNG facility in Brownsville, Texas.
Under the precedent agreement, the existing Valley Crossing Pipeline from Agua Dulce to Brownsville, Texas will be expanded along with the construction of an approximately nine-mile lateral connecting VCP to Annova LNG’s facility.
“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,” Omar Khayum, CEO of Annova LNG, said. “We will be the most sustainable and reliable provider of LNG from the United States.”
The LNG facility also plans to utilize electric-driven compressor engines and source its electricity through 100% carbon-free renewable energy resources.
The precedent agreement provides for the execution of 20-year firm transportation service agreement that will access multiple receipt points with major pipelines in the Agua Dulce area providing gas supply diversity for Annova’s feed gas requirements.
Additional terms of the agreement were not disclosed.
Annova LNG is scheduled to commence commissioning in 2024 and commercial operations in early 2025.
In October 2018, Annova LNG said that Black & Veatch and Kiewit invested in the facility and were awarded the engineering, procurement and construction contract on a joint basis.
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 terminal.
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