QP, ExxonMobil hit go at Golden Pass

08 February 2019, Week 05, Issue 544

Qatar Petroleum (QP) and ExxonMobil have taken the final investment decision (FID) on the Golden Pass LNG project, in Sabine Pass, Texas. The project will consist of three 5.2 million tpy trains, giving total capacity of 15.6 million tpy. Work will begin this quarter and should be completed in 2024. 

The plant is owned by Golden Pass Products, which is 70% held by QP and 30% by ExxonMobil. A statement from QP said the plan was worth more than US$10 billion. According to the US Department of Energy (DoE), QP will stump up more than US$8 billion, while ExxonMobil will provide more than US$2 billion. 

Work on the project will be carried out by McDermott International, Chiyoda International and Zachry Group. 

The statement noted the impact on the local area, including the creation of more than 45,000 direct and indirect jobs, while economic benefits should be more than US$35 billion, it said. ExxonMobil’s projection was rather more muted, saying it would provide around 9,000 jobs during construction – falling to 200 during operations. Of the economic benefits, it said US$31 billion would go to the US, while US$4.6 billion would come in direct tax revenues. The Golden Pass project will be the seventh LNG plant operating in the US, the DoE said. 

The FID was announced at a meeting in Washington DC, attended by US Secretary of Energy Rick Perry and Qatari Minister of State for Energy Saad Sherida Al-Kaabi, who is also the president and CEO of QP. ExxonMobil’s chairman and CEO, Darren Woods, was also in attendance. 

Al-Kaabi thanked Perry for his presence at the ceremony, saying it was a “testament to the depth and strength of the strategic bilateral relations between the US and … Qatar. The Golden Pass LNG export project is not our first investment in the US, and is certainly not going to be our last. It represents a significant part of the plans that [QP] had announced to invest US$20 billion in the US energy sector.” ExxonMobil also has grand plans for the US Gulf Coast, saying Golden Pass was part of its US$50 billion investment programme. 

Golden Pass will provide “depth and flexibility” to QP’s LNG portfolio, Al-Kaabi said. The two government officials also held talks on broad co-operation. 

QP and ExxonMobil also work together in Argentina, Brazil and Mozambique.

 

Edited by

Anna Kachkova

Editor

Any questions? Please get in touch