« BackNews: $10 Billion LNG Project Set For Texas
$10 Billion LNG Project Set For Texas
The global LNG market is continuing to gather momentum and there always seem to be new projects in the pipeline.
Now Exxon Mobil and Qatar Petroleum have announced that their scheme to expand a natural gas export facility in Texas has been given the go ahead. It’s expected to cost in excess of $10 billion, with construction on the new facility set to begin early this year.
It’s known as the Golden Pass LNG project, and it’s located in Texas’ Sabine Pass. Although construction is beginning this year, it’s not expected to be operational until 2024.
Chief executive director of Exxon Mobil Darren Woods commented: “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.”
Qatar Petroleum holds a 70 per cent stake in Golden Pass, while Exonn has a 30 per cent stake, Reuters reported.
US energy secretary Rick Perry told the news provider that the agreement shows how the US and Qatar, which are among the world’s top energy producers, can “support rather than subvert an open energy marketplace”.
Although this is a big investment from Qatar Petroleum, it’s not the only place that the company is ploughing money into the US. In total, it has unveiled plans to invest over $20 billion in the US LNG sector.
This comes after it left OPEC in 2018, to ensure it could expand in the US without fear of being hit by proposed legislation that would limit the involvement of OPEC members in the country’s energy sector.
Last month, Reuters reported that Qatar was preparing to tender for involvement in its own projects to expand its LNG facilities.
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