The company cited changes in the global LNG market as the reason for the decision
The LNG facility was expected to begin commissioning in 2024. (Credit: Carlo San from FreeImages)
Annova LNG has announced the discontinuation of its liquified natural gas (LNG) export facility under development in Brownsville, Texas, US.
The company said that the decision on the 6.5 million tonnes per annum (Mtpa) facility on the Port of Brownsville has been taken in the wake of changes in the global LNG market.
The LNG project was being jointly developed by Exelon, Black & Veatch, Kiewit Energy Group and Enbridge. Exelon is the majority owner of the project.
Annova LNG stated: “The entire Annova team is very grateful to the greater Brownsville community for having supported this project for several years. We are in the process of notifying our supporters, commercial partners and regulatory agencies of this decision.”
The Annova LNG facility was planned to be located on 731 acres along the south side of the Brownsville Ship Channel. The purpose of the facility was to receive natural gas from the Agua Dulce, Texas region.
In February last year, the project received authorisation from the US Department of Energy (DOE) export LNG to nations where the US does not have a free trade agreement (FTA).
The authorisation was given export of approximately 360 billion cubic feet per year (Bcf/y), which corresponds to 6.95Mtpa.
In April 2019, the US Federal Energy Regulatory Commission (FERC) has issued final environmental impact statement (EIS) for the $3bn Annova LNG project.
The project was proposed to comprise pipeline meter station; natural gas pretreatment and liquefaction facilities; two LNG storage tanks; marine dock and LNG transfer facilities; control room, administration/maintenance building; site access road; and utilities including power, water, and communication systems.
The LNG facility was expected to begin commissioning in 2024 and commercial operations in early 2025.