Annova LNG | October 1, 2019
Agreement includes direct payment of $5.5 million for community projects
BROWNSVILLE, TX — Annova LNG agreed to a 10-year tax abatement with Cameron County today. During construction, Annova LNG will make direct payments to the county of $5.5 million for community projects, in addition to property taxes. During operations, Annova LNG will pay $500,000 annually in a payment in lieu of taxes (PILOT) for a total of $5 million over 10 years.
Annova LNG included a regional resident employment commitment to meet a minimum 35 percent of full-time employees and an assurance to staff the facility with a minimum of 100 full-time employees to demonstrate the organization’s commitment to bringing jobs to the region.
The community benefits payment will go towards county projects identified by the Cameron County Commissioners Court.
“We want to provide sustainable, high-paying jobs for Cameron County residents,” said Omar Khayum, CEO, Annova LNG. “This tax agreement allows us to demonstrate to the community, as well as our investors and customers, that we will do everything we can to provide opportunities for Cameron County residents that don’t exist today.”
The positive economic impact of Annova LNG:
- Construction will require an average 700 personnel over the 54-month construction period, including detailed engineering and site preparation, and a total of $324 million in direct labor income.
- Annova LNG will support an average of 2,753 direct, indirect and induced Texas jobs each year of the terminal’s construction, with a total of $1.1 billion in labor income.
- Once completed, the project’s ongoing operation will create 165 permanent jobs in the Brownsville community with an average base wage of $70,000.
- The new spending from these jobs will flow throughout the entire Brownsville economy from homebuilding to local cafés, shops and services.
- Resulting from Annova LNG’s choice to use all-electric drive for the facility’s refrigeration compressor drive, STEC, working with ERCOT, will need to implement major grid improvements to accommodate Annova LNG’s 405-megawatt electrical load. Similar additional investments will be required for non-STEC ERCOT grid improvements further upstream. These improvements will help electric reliability across the county.
- Annova LNG intends to purchase 100 percent renewable power from the grid, which will precipitate third-party investment in approximately 900 megawatts of new renewable power projects in and around the region at an estimated value of $900 million.
- Annova LNG will be executing an agreement with the Brownsville Navigation District committing to funding channel improvement from the channel entrance to the western most boundary of the Annova LNG facility.
About Annova LNG
Annova LNG is a 6.0 MTPA liquefied natural gas export facility under development at the Port of Brownsville, Texas. With an experienced leadership team and investment-grade equity owners including Exelon Corporation, Black & Veatch Corporation and Kiewit Corporation, Annova LNG is expected to be a leader among second wave U.S. LNG projects by catering to midscale LNG customers who are buying in 1.0 MTPA increments. The facility would diversify the Brownsville and the Rio Grande Valley economy and provide a much-needed boost by creating thousands of direct and indirect jobs from construction through operations.