Enbridge-Annova LNG Deal to Expand Valley Crossing Pipeline

(P&GJ) — Enbridge's Valley Crossing natural gas pipeline from Agua Dulce to Brownsville, Texas, will be expanded along with the construction of a nine-mile lateral to Annova LNG’s Brownsville export facility, under an agreement signed Wednesday. 

Construction of Valley Crossing Pipeline, which began service in November 2018. (photo: Enbridge)

The precedent agreement provides for Valley Crossing Pipeline to transport 100% of the natural gas requirements at Annova's 6.5 MTPA LNG facility, now under development.

“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 U.S. LNG facilities,” said Omar Khayum, CEO of Annova LNG.

The agreement signed Wednesday provides for the execution of 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, the company said.

In October 2018, Annova LNG announced that Black & Veatch and Kiewit invested in the facility and were awarded the engineering, procurement and construction (EPC) contract on a joint basis. It is scheduled to commence commissioning in 2024 and commercial operations in early 2025, Annova said.

The Brownsville facility will use electric-driven compressor engines and source its electricity from carbon-free, renewable energy resources, making it "the most sustainable and reliable provider of LNG from the United States,” according to Khayum.

Canada's Enbridge placed the 168-mile (270-km) Valley Crossing Pipeline into service in November 2018 to transport up to 2.6 Bcf/d of natural gas to the Comisión Federal de Electricidad (CFE), Mexico’s state-owned utility, which serves about 37 million customers.

Valley Crossing’s transport capacity is half the average daily production output of the entire Eagle Ford shale basin—and more than 10 percent of the average daily production for the entire state of Texas.


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