Golden Pass LNG receives US export extension

QatarEnergy and ExxonMobil’s joint venture Golden Pass LNG has been granted an extension for its permit for exports to begin, Reuters reported on March 5.

The extension given by the US Department of Energy (DOE) pushes back the timeframe that exports of the super-chilled fuel are allotted to commence from September 30 this year to until March 31, 2027.

QatarEnergy and ExxonMobil are hopeful the project will start producing the super-cooled gas later this year, with cargoes to be shipped abroad shortly after.

“Golden Pass was the first project approved for exports to non-free trade agreement countries by DOE during the first Trump administration, and it is gratifying that this project is so close to being able to deliver its first LNG,” DOE official Tala Goudarzi told Reuters.

The announcement provides more time for the $10bn project being built in Sabine Pass, Texas, which has encountered a number of hurdles already.

In October, federal regulators provided the project with a three-year extension to finish construction of the 18mn tonne per year (tpy) facility after a new primary contractor was needed to be found following Zachry Holdings filing for Chapter 11 bankruptcy in late July.

The Texas project was initially planned to be completed in 2025, however construction delays and a shortage of skilled labour in the region have led to rising wages in the Gulf Coast region. As a result, cost overruns have been reported of more than $2.4bn.

Upon completion, Golden Pass would become the US’s ninth biggest LNG export facility. The US, which is the world’s largest exporter of LNG, is currently in the midst of attempting to further ramp up production of the super-chilled fuel, as President Trump promotes a fossil fuel agenda in his second term.

QatarEnergy has a majority stake in the project with a 70% interest, while ExxonMobil possesses the remaining 30% holding.