QP, ExxonMobil ink pact to develop $10bn Texas LNG project
February 05 2019 10:11 PM
HE Saad Sherida al-Kaabi, Minister of State for Energy Affairs, President and chief executive of QP,
HE Saad Sherida al-Kaabi, Minister of State for Energy Affairs, President and chief executive of QP, and Darren Woods, chairman and chief executive of ExxonMobil Corporation shake hands as US Energy Secretary Rick Perry (right) looks on after signing the agreement to develop the more than $10bn Golden Pass LNG export project in Texas, in Washington DC.

*Export facility to have a production capacity of 16mn tonnes of LNG per year

Qatar Petroleum (QP) and ExxonMobil are going ahead with the more than $10bn Golden Pass Terminal LNG (liquefied natural gas) project, located in Sabine Pass, Texas.
The project, which is owned by Golden Pass Products - a joint venture of QP (70%) and ExxonMobil (30%), was announced Tuesday during a special ceremony held in Washington DC.
It will pave the way for the construction of the Golden Pass LNG export facility with a production capacity of about 16mn tonnes of LNG per year. The project will commence soon, and is expected to create in excess of 45,000 direct and indirect full-time jobs in the US during the construction period, which is expected to take about five years.
It is estimated that the project will generate more than $35bn of economic benefits in the US including federal, state and local tax revenues over the life of the project.
“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 $20bn in the US energy sector, which we believe would bring great benefits for both the US and Qatar,” said HE Saad Sherida al-Kaabi, the Minister of State for Energy Affairs, President and chief executive of QP.
Highlighting the significance of this event in the context of the US LNG industry, he said: “This investment of over $10bn is of a particular importance as one of the largest single investment decisions in US LNG history.”
"We will all continue working together towards the successful execution of this project, which will benefit the US economy and the neighbouring local communities in the US gulf coast," al-Kaabi said.
The development of the Golden Pass LNG export facility enhances the depth and flexibility of its global LNG supply portfolio, and reinforces the position of the US as a key contributor to meeting the world’s growing demand for LNG, he said.
“The Golden Pass project is proof that two of the world’s top energy producers can work together as allies to increase energy diversity, advance energy security, and support rather than subvert an open energy marketplace,” Rick Perry, the US Secretary of Energy said.
Darren Woods, chairman and chief executive of ExxonMobil Corporation, said both QP and it have for decades successfully demonstrated their capabilities of producing, shipping and marketing natural gas globally.
“We look forward to bringing our shared expertise to bear at Golden Pass, which will help to provide low-cost, cleaner-burning natural gas to meet growing global energy demand and improve living standards,” he said.
The project’s engineering, procurement and construction contract was awarded to a consortium comprising Chiyoda, McDermott and Zachry and was executed at the ceremony by senior executives representing the consortium together with Golden Pass LNG.
“We look forward to bringing our shared expertise to bear at Golden Pass, which will help to provide low-cost, cleaner-burning natural gas to meet growing global energy demand and improve living standards,” he said.
The project’s engineering, procurement and construction contract was awarded to a consortium comprising Chiyoda, McDermott and Zachry and was executed at the ceremony by senior executives representing the consortium together with Golden Pass LNG.

Last updated: February 06 2019 12:02 AM


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