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Annova LNG files FERC review request

LNG Industry,

Annova LNG, LLC has filed a request with the US Federal Energy Regulatory Commission (FERC) to initiate a review of the potential development of a liquefaction facility at the Port of Brownsville, Texas.

The facility would be a mid-scale natural gas liquefaction and transfer facility. Exelon Generation is the majority owner of the Annova LNG Brownsville Project.

Natural gas exports

Commenting on the development, Exelon President and CEO, Ken Cornew, said: "The project represents a potential opportunity to diversify Exelon's role in the energy business in an area that shows strong growth potential: natural gas exports.

"Exploring LNG exports is a natural evolution of Exelon's diversification strategy. The US offers some of the most competitive supplies of natural gas in the world, and this project provides Exelon an opportunity to continue the growth of our wholesale gas businesses."

Permits and approvals

The project is contingent upon Annova successfully obtaining all necessary local, state and federal permits; acquisition of sufficient long-term customer commitments to buy LNG from the facility; and broad public support of the project in South Texas. A decision on whether to build the facility is expected by the end of 2017. This FERC filing marks the beginning of the projected two-year permitting process.

The LNG terminal would be sited beside the Brownsville Ship Channel on 650 acres designated by the Port of Brownsville for industrial use. The proposed site is approximately 8 miles from the Gulf of Mexico. The facility would be operational by 2020.

Construction jobs

Construction of the project would support an average of 675 on-site jobs over a four-year period, which translates to approximately US$324 million in direct labour income for Texans, according to an Ernst & Young economic analysis completed in February 2015. Once operational, the facility would employ approximately 165 workers.

The project requires 26 federal, state and local permits and licenses, including approvals from the FERC, US Department of Energy (DOE), US Army Corps of Engineers, and the US Fish and Wildlife Service, as well as various construction-related permits.

Community relationships

Annova President David Chung added: "Brownsville is an ideal location for this potential facility. If we move forward, the project will be built with private funds, not taxpayer dollars and will provide a significant economic boost to the region. Since its resurgence in the 1960s, LNG operators have amassed 60 years of safe transportation and operational experience worldwide with little or no impact to the general public. Annova LNG and Exelon Generation are committed to a consistent, long-term relationship with the community that emphasises clear facts and inclusiveness throughout the life of this potential facility."

The proposed site could accommodate three stages of development, with each capable of producing 2 million tpy of LNG for at least 6 million tpy when complete.

Adapted from press release by Katie Woodward

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