QatarEnergy and Exxon Mobil Corp.'s Texas joint venture has brought the first of three liquefied natural gas trains at Golden Pass into production, a milestone the partners say advances U.S. export capacity for the fuel.
In a statement on Monday, QatarEnergy said Golden Pass LNG will load its first cargo from facilities sited in Sabine Pass, Texas. The project is sized at 18 million tons per annum, and global exports from the terminal are expected to commence in the second quarter of this year.
The Sabine Pass terminal, located near the Texas-Louisiana border, is described by the partners as an important potential source of supply following damage to Qatar’s Ras Laffan facility on the Persian Gulf caused by strikes from Iran. Golden Pass is one of the handful of U.S. Gulf Coast gas export projects that are close to completion.
ExxonMobil Chief Executive Officer Darren Woods previously said, in January, that the first LNG from Golden Pass was likely to be produced in very early March. The joint venture reached final investment decision in 2019. The ownership split of the project is 70% for QatarEnergy and 30% for ExxonMobil.
Summary
The Golden Pass LNG venture has initiated production on its first train. The partners plan to deliver the first cargo from Sabine Pass, with global exports from the 18 million tpa project slated to begin in the second quarter. The terminal’s start-up arrives amid supply disruption to Qatar’s Ras Laffan facility following strikes, and the project stands among a small set of U.S. Gulf Coast export terminals nearing completion.
Key points
- Golden Pass has started LNG production from the first of three trains at its Sabine Pass, Texas facility.
- The 18 million tons per annum project is expected to commence global exports in the second quarter of this year.
- The terminal is positioned as a significant U.S. supply source after strikes damaged Qatar’s Ras Laffan facility; the project is among few Gulf Coast export terminals close to completion.
Risks and uncertainties
- Timing risk: The project is operating its first train now, but full global exports are only expected to start in the second quarter, leaving a window of execution risk for the remaining schedule. (Impacted sectors: Energy, Infrastructure)
- Supply disruption context: The terminal’s importance is framed by damage to Qatar’s Ras Laffan facility from strikes, reflecting ongoing uncertainty in global supply dynamics. (Impacted sectors: Energy, Commodities)