ExxonMobil and QatarEnergy agree to independently market LNG from Golden Pass with 2024 start-up
QatarEnergy and ExxonMobil have agreed to independently market LNG produced at their joint venture Golden Pass LNG plant in Sabine Pass in Texas with the start-up set for 2024.
“By leveraging their unique customer insights, QatarEnergy and ExxonMobil will better serve their downstream customers while meeting increased global demand,” the companies said.
The Federal Energy Regulatory Commission formally approved the transformation of the existing Golden Pass import terminal located on the Sabine-Neches Waterway in Texas into an export plant back in December 2016.
The Qatar-ExxonMobil project has advanced at a slow pace because of doubts several years ago over market demand issues that have now been resolved and work is well underway to construct three liquefaction Trains with around 16 million tonnes per annum of output.
While the first Train is still scheduled to come on stream in 2024, the second Train is expected to follow six-to-eight months later and Train 3 six-to-eight months after that.
ExxonMobil said it would market 30 percent of Golden Pass LNG volumes.
Mutual growth
“We are continuing to build on our decades-long relationship with QatarEnergy and collaborating on mutual growth opportunities that help deliver the lower-emissions energy our world needs,” said Peter Clarke, head of ExxonMobil’s LNG business.
“Independently marketing these Golden Pass volumes will generate increased value and flexibility across ExxonMobil’s growing global LNG portfolio,” Clarke explained.
ExxonMobil affiliate ExxonMobil LNG Asia Pacific (EMLAP) has been provided the exclusive rights to market 30 percent of Golden Pass LNG volumes.
QatarEnergy Trading will market the remaining 70 percent.
“Previously, ExxonMobil and QatarEnergy used the Ocean LNG joint venture to market Golden Pass volumes to customers,” noted ExxonMobil.
ExxonMobil and QatarEnergy continued their investments in Golden Pass throughout the pandemic-related down cycle, keeping the expansion project on schedule.
“The project will add new LNG capacity, create thousands of jobs and generate billions of dollars of economic growth for the region,” said ExxonMobil.
ExxonMobil explained that it was planning for lower-emissions LNG to play an increasingly important role in its advantaged portfolio.
“The company plans to nearly double its LNG supply by 2030 as low-cost, capital-efficient projects like the Golden Pass expansion come online,” said the US major.
