Americas News
Exxon, QPI Moving Forward with $10 Billion Texas LNG Export Terminal
Energy giant Exxon Mobil Corp. [NYSE:XOM] (Exxon) has signed a commercial framework agreement with Qatar Petroleum International (QPI) for its proposed $10 billion liquefied natural gas (LNG) export terminal on the U.S. Gulf Coast in Texas, the companies have announced through their Golden Pass Products LLC (Golden Pass Products) joint venture.
The project will involve the conversion of an existing import facility in Sabine Pass, Texas with the addition of liquefaction equipment and could export up to 15.6 million metric tonnes per year (mtpa).
Golden Pass Products received a permit last year to export LNG to free-trade agreement (FTA) nations and is seeking permission to send the fuel to non-FTA countries as well.
"This agreement sets out a highly competitive commercial blueprint for Golden Pass Products, with a commitment that builds on the unique combined strengths of QPI and Exxon Mobil through the global downstream LNG value chain," said Golden Pass President Bill Collins.
Qatar is the world's largest supplier of natural gas, but the U.S. and other nations including Australia are ramping up their production dramatically.
With the rising domestic supply in the U.S., imports of LNG are down, leading to the addition of export facilities at existing import terminals.
Energy companies Royal Dutch Shell Plc and Kinder Morgan Inc. [NYSE: KMI] are doing another such project at Elba Island in Georgia.
