The US Federal Energy Regulatory Commission has granted a three-year extension to Exxon Mobil and Qatar Energy to complete the Golden Pass (GPX) LNG plant in Texas.
The joint venture project has been delayed following the bankruptcy of lead construction contractor Zachry Holdings in March. At the time, Zachry claimed the project was approximately US$2.4 billion over budget, suggesting the joint venture partners may face challenges in finding a new EPC contractor.
The GPX plant was originally expected to startup in the next 12 months and was projected to have annual capacity of around 18 million tons of LNG. It represents a strategic shift for the US LNG landscape, transforming what was once an import terminal in Sabine Pass, Texas, into a major export hub aimed at capturing growing global demand for natural gas.
Exxon Mobil and Qatar Energy are reportedly in negotiations with McDermott International to take on the role of lead contractor on the project.
