Two energy giants have reached a US$10 billion final investment decision (FID) to build a major LNG export project in Texas, US.
The project is owned by Golden Pass Products, a joint venture (JV) between affiliates of Qatar Petroleum (70 per cent) and ExxonMobil (30 per cent).
The LNG export facility, which will have a production capacity of about 16 million t/a, connects with the Golden Pass Pipeline – a 111 km pipeline originating at the Golden Pass LNG Terminal with nine interconnects to intrastate and interstate pipelines.
The pipeline provides access to major markets through connections to pipelines servicing the Gulf Coast, Midwest and northeast US.
Golden Pass awarded the engineering, procurement and construction contracts for the project to a JV of Chiyoda International, McDermott and Zachry Group.
The company also executed a 20-year firm transportation agreement with Enable Midstream Partners and secured pipeline capacity on Kinder Morgan’s Natural Gas Pipeline Company of America (NGPL) system.
NGPL is one of the largest interstate pipeline systems in the country, comprising approximately 14,645 km of pipeline and 8.2 billion m3 of working gas storage.
The announcement took place during a ceremony held in Washington DC on 5 February, attended by Qatar Petroleum President and CEO Saad Sherida Al-Kaabi, US Secretary of Energy Rick Perry, and ExxonMobil Chair and CEO Darren Woods.
“Our team has worked diligently on the design, development and permitting for this world-class LNG export facility, and we are eager to begin construction to bring this exciting project to life,” said Golden Pass President Sean Ryan.
“We are extremely grateful to our employees, our community and all those who have supported us to help make this happen.
“This support has been absolutely critical in getting to this point, and we look forward to a long partnership going forward.”
Texas Governor Greg Abbott said the state is a leader in domestic oil and gas production, with this announcement reinforcing the view.
“Texas is proud that Golden Pass has chosen to expand its operations in Sabine Pass,” said Mr Abbott.
“This expansion represents not only an investment in creating jobs and growing our state’s economy, but also in expanding our nation’s international export reach and energy independence.
“I look forward to building upon our strong relationship with Golden Pass to keep Texas an energy leader at home and abroad.”
Construction on the project is planned for 2019, to take place over five years.
The facility is expected to be operational in 2024.
For more information visit the Golden Pass website.
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