Construction to begin on Golden Pass LNG export project in US

WCN Editorial Team 6 Feb 2019 NORTH AMERICA ENERGY & UTILITIES

ExxonMobil and Qatar Petroleum have decided to proceed with the development of the Golden Pass LNG (liquefied natural gas) export project in Sabine Pass, Texas.

The liquefaction project, worth more than $10bn, will have the capacity to produce 16m tonnes of LNG per year.

US-based EPCI company McDermott and its joint venture partners Chiyoda International and Zachry Group have been awarded a contract worth more than $1bn by Golden Pass Products, the joint venture between Qatar Petroleum and ExxonMobil affiliates, to build the export project.

The three companies will perform engineering, procurement, construction and commissioning of three approximately 5.2mtpa LNG trains with an expected production capacity of 16m tonnes of LNG per year.

Construction will commence in the first quarter of 2019 and the facility is expected to begin operations in 2024.

Over the five-year construction period, the project is expected to create 9,000 jobs and more than 200 permanent jobs during operations.

According to preliminary estimates by an independent study, the project is expected to generate up to $31bn in US economic gains and more than $4.6bn in direct federal, state and local tax revenues over the life of the project.

Exxon Mobil Corporation chairman and CEO Darren Woods said: “Golden Pass will provide an increased, reliable, long-term supply of liquefied natural gas to global gas markets, stimulate local growth and create thousands of jobs.

“The extensive experience of ExxonMobil and Qatar Petroleum provides the expertise, resources and financial strength needed to construct and operate an integrated liquefaction and export facility in the United States.”

ExxonMobil plans to invest more than $50bn over the next five years to build and expand manufacturing facilities in the US, including the ‘Growing the Gulf’ initiative, which is expected to create 45,000 jobs in America.

Qatar Petroleum will have a 70% working interest in the Golden Pass LNG export project and ExxonMobil 30%.

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Image: The Golden Pass Terminal. Photo: Courtesy of Golden Pass Products.

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