ExxonMobil commits to US LNG export investment

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EXXONMOBIL and Qatar Petroleum will invest more than US$10bn in the Golden Pass LNG export project in Texas, US.

The project demonstrates the dramatic shift in the US energy situation brought about by the US shale gas revolution, as the partners have taken a final investment decision to reengineer an existing regasification import terminal to liquefy gas for export.

The work will begin this quarter and the facility is expected to start production in 2024, with capacity of around 16m t/y of LNG. The project will create 9,000 jobs during construction, with 200 permanent roles for operations.

“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,” said Darren Woods, ExxonMobil CEO.

Wood Mackenzie said in its quarterly North America LNG projects update in December that it expects Golden Pass will be one of three US Gulf Coast facilities including Sabine Pass Train 6 and Calcasieu Pass to reach final investment decision in the first half of this year.

Alex Munton, principal analyst, Americas LNG at Wood Mackenzie, said: "With FID imminent on three US Gulf Coast LNG projects, North America is set to lead an expected record year for LNG project sanctions. With at least two other Gulf Coast projects – Freeport Train 4 and possibly Driftwood LNG – also not far behind, the first half of 2019 will be an especially busy one for the US."