Under the terms of the precedent agreement, the existing Valley Crossing Pipeline from Agua Dulce to Brownsville will be expanded, along with the construction of an approximately nine-mile lateral connecting VCP to Annova LNG’s facility.
Omar Khayum, CEO, Annova LNG, said: “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.
“We will be the most sustainable and reliable provider of LNG from the US.”
According to the statement, it is also planned for the LNG facility to utilise electric-driven compressor engines and source its electricity through 100% carbon-free renewable energy resources.
The precedent agreement was signed on 22 January, and 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 providing gas supply diversity for Annova’s feed gas requirements.
Additional terms of the agreement were not disclosed.
Annova LNG claims that it is scheduled to start commissioning in 2024 and commercial operations early the following year.