Texas LNG Project Axed

Annova LNG has announced the immediate discontinuation of its liquified natural gas (LNG) export facility under development in Brownsville, Texas, “due to changes in the global LNG market”.

“The entire Annova team is very grateful to the greater Brownsville community for having supported this project for several years,” Annova LNG said in a statement posted on its website.

“We are in the process of notifying our supporters, commercial partners, and regulatory agencies of this decision,” the company added in the statement.

The project had proposed building a 6.5 million ton per annum export facility on the Port of Brownsville and was being jointly developed by its majority owner Exelon Corporation and minority owners Black & Veatch Corporation, Kiewit Energy Group Inc, and Enbridge Inc. The purpose of the Annova LNG facility was to receive natural gas from the Agua Dulce, Texas region, provide any treatment necessary, chill the gas until it condensed into LNG, store LNG pending loading for tanker transport, and load LNG onto LNG tankers for export to other countries.

According to Annova LNG’s website, the facility was working to expand and diversify the Brownsville and Rio Grande Valley economies by creating thousands of direct and indirect jobs, beginning with construction, and continuing through long-term operations.

Earlier this month, Annova LNG revealed that the Texas Commission on Environmental Quality (TCEQ) issued an air permit to the company, which Annova LNG said was one of the final permits necessary to begin construction on its Brownsville LNG export facility.

Last month, Annova LNG held a signing ceremony with the Port of Brownsville leadership celebrating the signing of a 30-year lease with the Port for more than 700 acres. During the same month, the U.S. Department of Energy authorized Annova LNG to export LNG to nations where the United States does not have a free trade agreement.

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