Annova LNG on Jan. 22 signed a “precedent agreement” with Enbridge, builder and operator of Valley Crossing Pipeline, to provide natural gas to Annova’s proposed liquefied natural gas facility at the Port of Brownsville.
VCP was completed in late 2018 to supply natural gas to Mexico from the Agua Dulce Hub in Nueces County. Under the terms of the agreement, the existing pipeline would be expanded and a nine-mile lateral line connecting VCP and Annova constructed.
Annova and two other LNG companies proposing export terminals at the port received final permission in November from the Federal Energy Regulatory Commission to move forward with the projects, all three of which are awaiting a final investment decision. The facilities would liquefy natural gas received via pipeline, then load it aboard LNG carriers for shipment to foreign customers.
Annova’s plans call for a facility capable of producing 6.5 million tons of LNG annually (MTPA) and expects to begin commercial operations in early 2025. NextDecade’s Rio Grande LNG project calls for a 27 MTPA facility supplied by the planned Rio Bravo Pipeline from Agua Dulce.
In September, Enbridge and NextDecade announced a memorandum of understanding to pursue the Rio Bravo Pipeline project. Next Decade’s goal is to have Rio Grande LNG operational by late 2023.
Texas LNG has proposed a 4 MTPA plant, to be built in two phases, and expects its first LNG export to take place in 2024. Because of its small size, the company said it may be able to acquire capacity on other pipelines in the vicinity, VCP for instance, rather than building one of its own.