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    Enbridge to Deliver Feed Gas to Annova LNG

Summary

Deal will see expansion of Valley Crossing pipeline

by: Dale Lunan

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Natural Gas & LNG News, Americas, Liquified Natural Gas (LNG), Corporate, Contracts and tenders, Infrastructure, Pipelines, News By Country, United States

Enbridge to Deliver Feed Gas to Annova LNG

Annova LNG, developing a 6.5mn mt/yr liquefaction and export terminal in Brownsville, Texas, said January 22 it had entered into a precedent agreement with infrastructure developer Enbridge for 20 years of firm transportation service on and from Enbridge’s Valley Crossing Pipeline (VCP).

Under terms of the agreement, capacity of the 2.6bn ft3/day VCP, which extends some 168 miles from Agua Dulce, Texas to Brownsville, will be expanded and a nine-mile lateral built to connect VCP to the Annova terminal.

The deal provides for the execution of a 20-year firm transportation service agreement that will access multiple receipt points with major pipelines in the Agua Dulce area, giving Annova LNG supply diversity for its feed gas requirements.

“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 US LNG facilities,” Annova LNG CEO Omar Khayum said. “We will be the most sustainable and reliable provider of LNG from the United States.”

Annova LNG was approved by the US Federal Energy Regulatory Commission in November 2019. It will utilise electric-driven compressor engines powered by 100% carbon-free renewable energy sources, the company said.

Commissioning is expected to begin in 2024, with commercial operations planned for early 2025.