Annova LNG aborts development of $3bn LNG export project in US

Annova LNG has decided to scrap the development of the proposed $3bn LNG export facility in Brownsville, Texas, US.

The decision on the 6.5 million tonnes per annum (Mtpa) facility located on 731 acres along the south side of the Brownsville Ship Channel has been taken by the company owing to changes in the global LNG market.

Annova LNG in its press statement said: “The entire Annova team is very grateful to the greater Brownsville community for having supported this project for several years.

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

The Annova LNG project was being jointly developed by Exelon, Black & Veatch, Kiewit Energy Group and Enbridge. Exelon serves as an operator with a majority stake in the project.

The Annova LNG facility was intended to receive natural gas from the Agua Dulce, Texas, region.

In February 2020, the project received authorisation from the US Department of Energy (DOE) to export LNG to nations where the US does not have a free trade agreement (FTA).

The LNG facility was expected to receive 900 million cubic feet (Mcf) of feed gas a day through an intrastate pipeline. It was expected to begin commissioning in 2024 and commercial operations in early 2025.

In April 2019, the US Federal Energy Regulatory Commission (FERC) issued a final environmental impact statement (EIS) for the Annova LNG project.

The project was proposed to comprise a pipeline meter station, natural gas pretreatment and liquefaction facilities, two LNG storage tanks, marine dock and LNG transfer facilities, control room, administration/maintenance building, site access road, as well as utilities such as power, water, and communication systems.