Golden Pass LNG Terminal

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Golden Pass LNG includes a retired LNG import terminal and an under-construction LNG export terminal on the Sabine-Neches Waterway near Sabine Pass, Texas.

Location

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Export project details

Train 1

  • Owner: Golden Pass LNG Terminal LLC
  • Operator: Golden Pass Products[1]
  • Parent: Qatar Petroleum (70%), ExxonMobil (30%)[2]
  • Location: Sabine Pass, Texas, United States
  • Coordinates: 29.761394, -93.919418 (exact)
  • Capacity: 6.03 mtpa[3]
    • Previously: 5.2 mtpa[4]
  • Status: Construction
  • Type: Export
  • Cost: US$10 billion (total cost of Trains 1-3)[5]
  • Start Year: 2025[6]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Train 2

  • Owner: Golden Pass LNG Terminal LLC
  • Operator: Golden Pass Products[1]
  • Parent: Qatar Petroleum (70%), ExxonMobil (30%)[2]
  • Location: Sabine Pass, Texas, United States
  • Coordinates: 29.761394, -93.919418 (exact)
  • Capacity: 6.03 mtpa[3]
    • Previously: 5.2 mtpa[4]
  • Status: Construction
  • Type: Export
  • Cost: US$10 billion (total cost of Trains 1-3)[5]
  • Start year: 2025[6]

Train 3

  • Owner: Golden Pass LNG Terminal LLC
  • Operator: Golden Pass Products[1]
  • Parent: Qatar Petroleum (70%), ExxonMobil (30%)[2]
  • Location: Sabine Pass, Texas, United States
  • Coordinates: 29.761394, -93.919418 (exact)
  • Capacity: 6.03 mtpa[3]
    • Previously: 5.2 mtpa[4]
  • Status: Construction
  • Type: Export
  • Cost: US$10 billion (total cost of Trains 1-3)[5]
  • Start Year: 2025[7][8]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Import Project Details

  • Owner: Golden Pass LNG Terminal
  • Parent: Qatar Petroleum (70%), ExxonMobil (30%)[2]
  • Location: Sabine Pass, Texas, United States
  • Coordinates: 29.761394, -93.919418 (exact)
  • Capacity: 15.7 mtpa[2]
  • Status: Mothballed[9]
  • Type: Import
  • Start Year: 2011[9]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

The Golden Pass LNG Terminal is a joint venture formed by affiliates of three oil and gas companies: Qatar Petroleum (70%), ExxonMobil (17.6%) and ConocoPhillips (12.4%). The import terminal was completed in 2009, and is capable of importing approximately 2 billion cubic feet of natural gas per day through its dual berth ship docks.[10]

In October 2012, Qatar's Golden Pass Products LLC received permission to export liquefied natural gas to nations that have free-trade agreements with the U.S. The partners will make a final decision about the proposed US$10-billion export project after receiving regulatory approvals. The investment would pay for liquefaction plants with 15.6 million metric tons of annual capacity to be added to the existing Golden Pass LNG import terminal in Texas.[11] It will have three production trains with 5.2 million metric tons of annual capacity.[12]

In 2016, the US Federal Energy Regulatory Commission issued a notice of schedule for environmental review of the Golden Pass LNG export project.[13][14]

In April 2017 the terminal was cleared by the Department of Energy to begin exporting up to 2.2 Bcf/day of natural gas.[15]

Construction is expected to begin after a final investment decision (FID).[15] FID was reached by Qatar Petroleum and ExxonMobil in February 2019.[5]

In October 2019, Golden Pass LNG Terminal LLC asked the Federal Energy Regulatory Commission (FERC) for more time to place its facilities into service, citing permitting delays. Golden Pass told the Federal Energy Regulatory Commission that it expects to place its three trains into service on a staggered schedule, with Train 1 expected by September 30, 2025, Train 2 by March 31, 2026, and Train 3 by November 30, 2026.[16]

In April 2022, the Biden Administration authorized additional exports of 0.35 Bcf/day (2.7 mtpa) LNG from Golden Pass's under construction facility[17], increasing the total export capacity to 18.1 mtpa (equal to ~6.03 mtpa per train).[3]

In October 2022, QatarEnergy and ExxonMobil agreed to independently offtake and market their respective equity shares of LNG from the project.

In October 2022, QatarEnergy and ExxonMobil agreed independently to offtake and market their respective equity shares of LNG produced by the Golden Pass LNG export project. QatarEnergy Trading will be responsible for offtaking, transporting, and trading QatarEnergy's 70% share of the LNG produced by the project.[18]

In May 2024, it was reported that Golden Pass LNG was encountering setbacks. Natural Gas Intel reported that timeline for launching production was slipping, as the developer faced labor shortages and construction issues. [19] The lead contractor building the project, Zachry Holdings, also filed for bankruptcy citing challenges at the project, and said that it was seeking a "structured exit" from the project. Another Golden Pass contractor Chiyoda International has filed for bankruptcy as well.[20] According to a statement from Zachry Holdings, "As the project’s lead contractor, we have navigated significant challenges and disruptions stemming first from the COVID-19 pandemic and, more recently, international geopolitical issues. These unforeseen disruptions have resulted in significant financial strain while meeting targets and keeping the project appropriately staffed."[21]

In June 2024, Golden Pass contractor Zachry Holdings laid off 4,430 of its more than 6,000 workers following its declaration of bankruptcy. The company blamed the layoffs on Golden Pass LNG, which it said refused to pay for the contractors services.[22]

Golden Pass carbon emissions revealed

In December 2020, drawing on internal ExxonMobil planning documents, an expose from Bloomberg revealed that the company's forecasts for direct carbon emissions at the Golden Pass LNG terminal would reach 3.1 million metric tons of carbon dioxide in 2025. This level of emissions, just from cooling and compressing methane on site, means that Golden Pass will have the same climate impact as a coal power plant. Transporting and burning the exported fuel would involve much higher carbon emissions.[23]

Articles and resources

References

  1. 1.0 1.1 1.2 World LNG Report 2021. International Gas Union. June 2021.
  2. 2.0 2.1 2.2 2.3 2.4 The LNG Industry: Annual Report 2020, page 48, International Group of Liquefied Natural Gas Importers, accessed April 29, 2020
  3. 3.0 3.1 3.2 3.3 "Magnolia and Golden Pass Increases". LNG Allies. Retrieved 2022-05-04.
  4. 4.0 4.1 4.2 2020 World LNG Report, page 102, International Gas Union, April 27, 2020
  5. 5.0 5.1 5.2 5.3 QP, ExxonMobil sanction $10 bln Golden Pass LNG project, Offshore Energy, Feb. 6, 2019
  6. 6.0 6.1 Curtis Williams, Firm building QatarEnergy-Exxon LNG plant in Texas files for bankruptcy, Reuters, May 21, 2024
  7. U.S. Liquefaction Capacity, Energy Information Administration, November 3, 2020
  8. "IGU World LNG Report 2022". Retrieved 2022-07-26.{{cite web}}: CS1 maint: url-status (link)
  9. 9.0 9.1 2019 World Gas Report International Gas Union, accessed August 2019
  10. "About Golden Pass LNG Terminal," Golden Pass Terminal, accessed June 2017
  11. "Qatar, Exxon venture wins first U.S. LNG export permit," Bloomberg News, Oct 4, 2012.
  12. ExxonMobil's JV to Market Golden Pass LNG Export Volumes Yahoo Finance, April 2, 2019
  13. "FERC sets Golden Pass LNG export project final EIS date," LNG World News, Jun 29, 2015
  14. "Biggest No Longer Means Best in Qatar's Strategy for LNG Wealth," Mohammed Sergie, Bloomberg News, January 5, 2016.
  15. 15.0 15.1 "Exxon-Conoco JV Golden Pass LNG approved for natural gas export," Seeking Alpha, Apr. 26, 2017
  16. Jeremiah Shelor, Golden Pass LNG Asks FERC For Extension Due to Permitting Delays, Natural Gas Intel, Oct. 31, 2019
  17. Daly, Matthew. Energy Dept OKs expanded LNG exports from Texas, Louisiana. Associated Press. April 27, 2022.
  18. GIIGNL. The LNG Industry: GIIGNL Annual Report 2023. July 14, 2023.
  19. "Labor Crunch Could Push Back Golden Pass Start-Up – Three Things to Know About the LNG Market". naturalgasintel.com. 2024-05-02. Retrieved 2024-07-01.
  20. "Firm building QatarEnergy-Exxon LNG plant in Texas files for bankruptcy". Yahoo Finance. 2024-05-21. Retrieved 2024-07-01.
  21. "Zachry Holdings, Inc. Initiates Voluntary Court-Supervised Chapter 11 Process to Address Financial Challenges Related to Golden Pass LNG Export Terminal Site". zachrygroup.com. Retrieved 2024-07-01.
  22. Houston Chronicle. Thousands of workers laid off by engineering firm in feud over Exxon’s Golden Pass. June 6, 2024.
  23. Kevin Crowley and Akshat Rathi, [https://www.bloomberg.com/graphics/2020-exxon-carbon-emissions-data-climate-change Exxon Knows Its Carbon Future And Keeps the Data From View,] Bloomberg, Dec. 23, 2020

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