By Santhosh V Perumal/Business Reporter


The Golden Pass LNG Terminal in the US - built jointly by Qatar Petroleum (QP), ExxonMobil and Conoco Phillips - will receive gas from Qatar for “redistribution to other markets” in the North American region.
In this regard, US Undersecretary of Commerce for International Trade Stefan M Selig had talks with top Qatari officials, including QP chief executive Saad Sherida al-Kaabi.
“The gas will be exported to other countries in the region with which the US has trade agreements,” said Selig, who is on a maiden visit to Qatar to hold wide-ranging talks over possible future business alliances.
He did not elaborate.
The US undersecretary’s statement assumes significance in the backdrop of lesser demand from Washington for Qatar’s LNG due to its shale fracking and that Qatar can now aim for more markets in the American region.
The Golden Pass LNG Terminal, near Sabine Pass, Texas, has a 70% stake by QP, 17.6% by ExxonMobil and 12.4% by ConocoPhillips. According to the company website, it is capable importing approximately 2bn cu ft of natural gas per day through its dual berth ship docks. ExxonMobil in 2013 signed a pact with Qatar Petroleum International outlining a plan for construction of a $10bn natural gas export terminal in Texas.
As the US has made fast progress in its shale gas development, the Golden Pass terminal, which was meant to bring Middle Eastern gas to the US, has been lying idle for the last three years.
Asked about the future of US investments in the Gulf region’s hydrocarbon sector in view of America fast turning to a net exporter of energy; Selig said, “I expect that to continue regardless of the progress that we are making in the US as energy is a global market.”
Elaborating on his trade mission to Qatar, with which the US two-way trade was $7bn in 2014 (against $1.4bn in 2005), Selig said, “Our commercial ties will mean not only a win-win situation but also serve as an important engine for greater trade and investment.”
Appreciative of Qatar’s diversification efforts, he said, it has opened many promising potential for co-operation, especially in the areas of IT, infrastructure development, healthcare and education.
Qatar’s total foreign direct investment stock (which includes private investments) in the US amounted to $3.2bn as of 2014.
“Our commercial ties can strengthen and deepen our strategic relations with Qatar,” he said, adding commercial ties are an essential dimension to the strategic relations.
Selig also had talks with Hassan al-Thawadi, secretary general of Supreme Committee for Delivery and Legacy and other senior officials of government as well as businesses.