ANNOVA LNG PROMISES TO "MITIGATE" DAMAGE TO ENVIRONMENT TO GET APPROVAL FOR PLANT AT PORT OF BROWNSVILLE

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By Jessica Corso, Reporter, San Antonio Business Journal



One of three proposed projects to ship liquefied natural gas from the Port of Brownsville took a step forward in a federal review Friday, with regulators saying that most of the environmental harm caused by the facility's construction could be curtailed through a company-proposed mitigation strategy.

The Federal Energy Regulatory Commission issued its final environmental impact statement for an LNG terminal to be run by Exelon Corp. (NYSE: EXC) subsidiary Annova LNG. Though the project stands to cause harm to the local environment, most of it will be reduced through Annova's proposed plan, FERC staff said.

While the report does not grant FERC approval to the project, the commission must consider the environmental review when weighing whether to grant its approval. Annova celebrated the release of the report as a "significant milestone" toward getting its project approved.

“We are pleased they recognize our proactive approach to minimizing our impact on the environment, including investing in mitigation that is above and beyond what is required by local, state and federal regulations," Annova CEO Omar Khayum said in a statement.

Annova's proposed LNG terminal, taken together with two others before the FERC, could devastate local wetlands, harming local industries like ecotourism and shrimping, the Sierra Club said.

The proposed mitigation strategy is unclear and undeveloped, the environmental group said, and the local school board has already signaled its opposition.

“Texans from across the state have spoken out countless times in opposition to Annova LNG and the other fracked gas projects proposed for our community,” Sierra Club organizer Rebekah Hinojosa said. 

“We shouldn’t have to sacrifice our health, our pristine coastline, our ecotourism industry and our diverse wildlife, all so that fossil fuel companies can export more fracked gas overseas.”

The company has promised to create a 185-acre conservation corridor to protect the local ocelot population and to restore 250 acres of wetlands in an effort to reduce the habitat lost when the Brownsville Ship Channel was built.

“From moving the entire site to accommodate an ocelot corridor to using electric motor-driven equipment to minimize air emissions, Annova LNG has demonstrated its continued commitment to operating the Annova LNG project in an environmentally responsible manner," Khayum said.

The Annova facility would be capable of processing 6.95 million tons of LNG per year, which would require 125 ships to export.

Texas LNG Brownsville, one of the other companies that have proposed LNG facilities at the port, has received final environmental review from the FERC. The agency also said that it believes a company-led strategy at that facility could mitigate environmental damage. The third project, by Rio Grande LNG, is awaiting the results of its review.