Annova LNG Signs Natural Gas Supply Deal with Enbridge

Federal Energy Regulatory Commission officials issued a permit to Annova LNG in November giving the company permission to build a plant that can make up to 6.5 million metric tons of LNG per year.

SEATTLE (Oil Monster): Houston liquefied natural gas company Annova LNG has signed a 20-year supply deal with Enbridge, a Canadian pipeline company that owns a 10.5 percent stake in Annova's proposed export terminal.

Under the deal, Annova LNG's proposed plant at the Port of Brownsville will get all of its natural gas from Enbridge's Valley Crossing Pipeline, which begins at the Agua Dulce Hub near Corpus Christi and goes through the port before heading to the U.S.-Mexico border in the Gulf of Mexico.

Federal Energy Regulatory Commission officials issued a permit to Annova LNG in November giving the company permission to build a plant that can make up to 6.5 million metric tons of LNG per year.

Annova LNG has yet to seal contracts with overseas customers, but if the export terminal obtains financing and is built, the Houston company and Enbridge will build a 9-mile lateral connecting the Valley Crossing Pipeline to the facility.

In addition to setting aside more than 1,400 acres of land for wildlife, the LNG plant has pledged to use electric turbines that reduce noise and pollution, and to get all of its power from renewable sources such as wind and solar.

Launched in 2013 and headquartered in Houston, Annova LNG is owned by a consortium of four companies. Chicago utility company Exelon owns 80.55 percent while Enbridge, the Canadian pipeline company, holds a 10.5 percent stake. Nebraska engineering, procurement and construction firm Kiewit and Kansas energy technology firm Black & Veatch each own 4.475 percent.

Annova LNG, Rio Grande LNG and a third project named Texas LNG face stiff opposition from a coalition of Rio Grande Valley shrimpers, fishermen, environmentalists, neighbors and communities working under the banner Save RGV from LNG.

Federal officials granted permits to all three exports projects in November but they remain contested by opponents seeking a second hearing.

“We already know this is a dirty, dangerous fracked gas project, and having Enbridge company involved just makes it worse,' Sierra Club organizer Rebekah Hinojosa said. 'Enbridge has a notorious track record of leaks and explosions, and we know we can’t trust them to safely build a polluting pipeline through our communities.”

Courtesy:www.houstonchronicle.com