International
Qatar Petroleum, ExxonMobil advance Golden Pass LNG export terminal
Houston — Qatar Petroleum and ExxonMobil have agreed to build their long-proposed Golden Pass LNG export terminal in Texas, across the river from Cheniere Energy’s Sabine Pass facility in Louisiana, ExxonMobil said Tuesday.
The more-than-$10 billion redevelopment and conversion of the Golden Pass receiving terminal will be a significant addition to US Gulf Coast LNG export capacity when it starts up in 2024, with the ability to liquefy up to 16 million mt/year. The expected cost translates to approximately $625/mt, making it slightly more expensive than what is being aimed for by developers of some of the other second wave US export facilities.
The terminal was initially planned to be an import facility, but after the US shale revolution unlocked vast amounts of cheap natural gas, developers, especially those along the Gulf Coast, began looking at exports instead. US Department of Energy data show Golden Pass has not imported any gas since June 2011.
In its statement announcing the final investment decision, ExxonMobil said it will hold a 30% stake in the export project, with Qatar Petroleum holding the other 70%. The statement makes no mention of the 12.4% stake that ConocoPhillips held in the joint venture when the import terminal was being developed.
In recent months, Qatar Petroleum has stated an aggressive position toward expanding its gas and LNG operations in the US. ExxonMobil said Qatar Petroleum will be joining it in exploration and development activities in Argentina, Brazil and Mozambique.
The US currently has three major export terminals in operation that produce LNG from shale gas. As many as three more are expected to start up this year. Another dozen projects that, like Golden Pass, would make up the second wave of US LNG exports and are expected to receive permit decisions from federal regulators this year and early next year. Golden Pass already has its permit and construction is expected to begin by the end of March.