Gas and electric utility Exelon has become the majority shareholder of the proposed Annova LNG export project near the Port of Brownsville, Texas, Exelon told Argus.
Exelon, a major producer of nuclear power in the US and owner of energy retailer Constellation, declined to disclose the size of its stake in Annova or the value of the transaction.
"The project is still in its initial stages of screening and development, including project and site evaluations and preliminary engineering and design," Exelon said. "We will provide more details as the project progresses."
Annova officials did not return an Argus call seeking comment. The US Department of Energy on 20 February authorized Annova to export up to 7mn t/yr, equivalent to 934mn cf/d (26mn m³/d) of gas, for 30 years, beginning on the date of the first export or by 20 February 2022, whichever comes first.
Annova would be built in three phases, each with a nameplate capacity of 2mn t/yr and a peak capacity of 2.33mn t/yr, chief executive David Chung previously told Argus. Annova said it hopes to bring the first phase on line in mid-2018 using its license to export to countries holding free trade agreements (FTA) with the US. It plans to file a non-FTA application for the potential second and third phases, he said.
Most of the world's largest LNG consuming countries by volume do not have FTAs with the US, but Annova is focusing on marketing to South Korea and Chile, two significant LNG importers that have FTAs, Chung said. In addition, he said there are many FTA countries in Central and South America that are looking to start importing LNG to replace oil-based power generation with potentially less expensive gas-fired generation.
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