Golden Pass moves closer to producing first LNG with increased natural gas flows into facility

  • Golden Pass project to be major U.S. LNG export facility
  • Exxon CEO expects LNG production to start in March
  • Project faced delays, cost overruns, contractor bankruptcy

Golden Pass, an LNG project jointly owned by ExxonMobil and QatarEnergy, pulled in 300 MMft3 of gas on Wednesday as it moves closer to making its first LNG, LSEG data shows.

When complete, the 18-metric MMtpy project in Texas (U.S.) is expected to be one of the largest U.S. LNG export facilities and will help the United States maintain its position as the world's largest exporter of the superchilled gas.

On January 30, Exxon's CEO Darren Woods said he expected the plant to start producing LNG in March, marking an important milestone for the project (learn more).

"ExxonMobil continues to support the Golden Pass venture in its efforts to deliver this important project," an Exxon spokesperson said on Wednesday.

Golden Pass did not immediately respond to a request for comment.

The latest increase in gas usage at the plant follows the arrival and offloading of a cool-down cargo at the plant in December, one of the final testing stages before moving to LNG production.

The $10-B project has been beset by delays and cost overruns after construction began in 2019. It had to change its lead contractor for the project, which filed for bankruptcy claiming cost overruns.

"That venture has done a really good job of recovering from the bankruptcy," Woods said during Exxon's fourth-quarter earnings call with analysts. "My expectation is we will see first LNG produced in very early March."

The plant increased its demand for natural gas from 200 MMft3 on Tuesday to 300 MMft3 on Wednesday.

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