KENNETT SQUARE, Pa.,
March 11, 2015 /PRNewswire/ --
Houston-based Annova LNG, LLC
today filed a request with the Federal Energy Regulatory Commission
to initiate a review of the potential development of a mid-scale
natural gas liquefaction and transfer facility at the Port of
Brownsville, Texas. Exelon
Generation is the majority owner of the Annova LNG Brownsville
Project.
"The project represents a potential opportunity to diversify
Exelon's role in the energy business in an area that shows strong
growth potential: natural gas exports," Exelon Generation President
and CEO Ken Cornew said.
"Exploring LNG exports is a natural evolution of Exelon's
diversification strategy," Cornew said. "The U.S. offers some of
the most competitive supplies of natural gas in the world, and this
project provides Exelon an opportunity to continue the growth of
our wholesale gas businesses."
The project is contingent upon Annova successfully obtaining all
necessary local, state and federal permits; acquisition of
sufficient long-term customer commitments to buy liquefied natural
gas from the facility; and broad public support of the project in
South Texas. A decision whether to
build the facility is expected by the end of 2017. Today's filing
marks the beginning of the projected two-year permitting
process.
If built, the LNG terminal would sit beside the Brownsville Ship
Channel on 650 acres designated by the Port of Brownsville for industrial use. The proposed
site is about eight miles from the Gulf
of Mexico in Cameron County,
Texas. The facility would be operational by 2020.
Construction of the project would support an average of 675
on-site jobs over a four-year period, which translates to
approximately $324 million in direct
labor income for Texans, according to an Ernst & Young economic
analysis completed in February 2015. Once operational, the
facility would employ about 165 workers at an average salary of
about $70,000 a year.
Liquefied natural gas, or LNG, is natural gas that has been
cooled until it becomes a liquid, making it easier and more
efficient to store and ship. A "mid-scale" LNG terminal serves a
niche market of customers needing smaller LNG deliveries for
reasons such as smaller port facilities or lower import
requirements.
The project requires 26 federal, state and local permits and
licenses, including approvals from the Federal Energy Regulatory
Commission, U.S. Department of Energy, U.S. Army Corps of
Engineers, and the U.S. Fish and Wildlife Service, as well as
various construction-related permits. The paperwork filed
with FERC today was a formal notification that Annova intends to
pursue permitting and licensing of the project.
"Brownsville is an ideal
location for this potential facility," said Annova President
David Chung, who also serves as vice
president, LNG, for Exelon Generation. "If we move forward, the
project will be built with private funds, not taxpayer dollars and
will provide a significant economic boost to the region.
Since its resurgence in the 1960s, LNG operators have amassed 60
years of safe transportation and operational experience worldwide
with little or no impact to the general public. Annova LNG
and Exelon Generation are committed to a consistent, long-term
relationship with the community that emphasizes clear facts and
inclusiveness throughout the life of this potential facility."
The proposed site could accommodate three stages of development,
with each capable of producing two million tons of LNG a year for
at least six million tons annually when complete.
Exelon Corporation (NYSE: EXC) is the nation's leading
competitive energy provider, with 2014 revenues of approximately
$27.4 billion. Headquartered in
Chicago, Exelon does business in
48 states, the District of
Columbia and Canada. Exelon
is one of the largest competitive U.S. power generators, with
approximately 32,500 megawatts of owned capacity comprising one of
the nation's cleanest and lowest-cost power generation fleets. The
company's Constellation business unit provides energy products and
services to more than 2.5 million residential, public sector and
business customers, including more than two-thirds of the Fortune
100. Exelon's utilities deliver electricity and natural gas to more
than 7.8 million customers in central Maryland (BGE), northern Illinois (ComEd) and southeastern Pennsylvania (PECO). Follow Exelon on Twitter
@Exelon.
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SOURCE Exelon Generation