Golden Pass LNG Export Project to Begin Construction

ExxonMobil and Qatar Petroleum announced today they have made a final investment decision to proceed with development of the Golden Pass LNG export project located in Sabine Pass, Texas. Construction will begin in the first quarter of 2019 and the facility is expected to start up in 2024 according to an ExxonMobil statement. The engineering, procurement and construction contracts for the project have been awarded to joint venture of Chiyoda International Corporation, McDermott International Inc. and Zachry Group.

The project will include three liquefaction trains, each approximately 5.2 million tons per year. It will utilize the existing infrastructure including five 155,000 m3 LNG storage tanks, two marine berths to accommodate the largest LNG carriers, and the existing 69-mile Golden Pass Pipeline system with access to U.S. markets.

The $10+ billion liquefaction project is expected to create about 9,000 jobs over the five-year construction period and more than 200 permanent jobs during operations. According to ExxonMobil preliminary estimates by an independent study indicate the project could generate up to $31 billion in U.S. economic gains and more than $4.6 billion in direct federal, state and local tax revenues over the life of the project.

“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, chairman and chief executive officer of Exxon Mobil Corporation. “The extensive experience of ExxonMobil and Qatar Petroleum provides the expertise, resources and financial strength needed to construct and operate an integrated liquefaction and export facility in the United States.”

Working interests in the Golden Pass LNG export project are 70 percent Qatar Petroleum and 30 percent ExxonMobil.

The U.S. Department of Energy has currently authorized 23.05 billion cubic feet per day (235 billion cubic meters per year or 177 MTPA (million tons per annum) of LNG) of natural gas primarily spread across 10 large-scale export projects in Louisiana, Texas, Maryland, Georgia, and the Gulf of Mexico. Once completed, Golden Pass will be the seventh large scale LNG export project in the United States.