Annova LNG Sign Deal with Enbridge

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.

The precedent agreement with Enbridge Inc.’s Valley Crossing Pipeline LLC (VCP) would provide transportation for the still unsanctioned 6.5 million metric tons/year (mmty) facility, which was approved by federal regulators in November.

Under the deal, the existing 2.6 Bcf/d VCP from Agua Dulce to Brownsville would be expanded, and a roughly nine-mile lateral connecting VCP to Annova’s facility would be constructed.

“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.