NEW YORK (Reuters) - U.S. liquefied natural gas (LNG) developer Annova LNG said on Monday that it has stopped development of its proposed LNG export plant in Brownsville in Texas.
“Due to changes in the global LNG market, Annova LNG has announced the immediate discontinuation of its liquefied natural gas export facility under development in Brownsville, Texas,” the company said in a statement on its website.
LNG prices in Europe and Asia collapsed to record lows during the first half of 2020 due primarily to coronavirus demand destruction. Global LNG demand is now growing again, but at a slower pace than in past years.
Global LNG demand has increased every year since 2012 and hit record highs every year since 2015 due primarily to fast growing demand in Asia.
Analysts expect global LNG demand to grow about 3-5% annually between 2021-2025, much slower than the 11%-12% annual increases from 2017-2019.
Brownsville was one of 14 North American projects awaiting a potential final investment decision in 2021, most of which were carried over from 2020, when just one started construction.
Only one or two projects are expected to go forward this year, including Venture Global LNG’s proposed Plaquemines project in Louisiana.
Annova proposed building a facility capable of exporting 6.5 million tonnes per annum (MTPA) of LNG or 0.85 billion cubic feet per day (bcfd) of natural gas.
One billion cubic feet of gas is enough to supply about five million U.S. homes for a day.
The Annova LNG project was being jointly developed by its majority owner, U.S. energy company Exelon Corp, and minority owners Black & Veatch Corp, Kiewit Energy Group Inc and Canadian energy company Enbridge Inc, the company said.
Reporting by Scott DiSavino; Editing by David Clarke and Jan Harvey
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