Precedent Agreement secures access to natural gas supply for the most sustainable U.S. LNG facility
Annova LNG signed a Precedent Agreement with Valley Crossing Pipeline, LLC (VCP), providing transportation for Annova LNG’s total natural gas requirements at its 6.5 MTPA liquefied natural gas (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,” said Omar Khayum, CEO, Annova LNG. “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 percent carbon-free renewable energy resources.
Signed on January 22, 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 announced that Black & Veatch and Kiewit invested in the facility and were awarded the engineering, procurement and construction (EPC) 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.