Golden Pass LNG, the joint venture of QatarEnergy and Exxon Mobil, has produced its first liquefied natural gas at its new terminal in Texas, the company said Monday.
The startup comes as global gas markets remain tight after the war between the US, Israel and Iran pushed energy prices higher and disrupted output in Qatar.
First cargo in sight
“Today, we began producing LNG at our terminal in Sabine Pass, marking the completion of a significant effort to construct, commission, and start up the first LNG train,” Alex Savva, president and CEO of Golden Pass, said in a statement.
The company said the first production sets the stage for its initial cargo from Sabine Pass, Texas.
Capacity and ownership
Once fully operational, Golden Pass will be able to produce 18 million metric tons a year.
Train 1, the first production unit, will add 6 million metric tons a year of capacity.
Based on equity ownership, QatarEnergy will receive just over 4 million metric tons, while Exxon will receive just under 2 million metric tons, the company said.
Delays and market backdrop
The $10 billion project has faced delays and cost overruns since construction began in 2019, and it has also dealt with the bankruptcy of its original lead contractor.
QatarEnergy, the world’s second-largest LNG exporter, said on March 24 that it would declare force majeure on production because of the Middle East conflict and has shut in facilities accounting for roughly 20% of global LNG supply.
Supply disruptions from Qatar have pushed Asian LNG prices higher and prompted some countries to turn to coal or curb energy exports as they manage shortages.
With first production now achieved, attention turns to initial cargoes and the ramp-up of Train 1 output.
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