ExxonMobil, Qatar Petroleum Begin Work on Golden Pass LNG
The project is part of ExxonMobil’s plan to invest more than $50 billion over the next five years to build and expand manufacturing facilities in the U.S.
ExxonMobil and Qatar Petroleum have reached an agreement and will proceed with the development of the Golden Pass liquefied natural gas (LNG) export project in Sabine Pass, Texas. Construction is scheduled to begin in the first quarter of 2019, with completion anticipated for 2024. The cost of the project is expected to exceed $10 billion.
Woods and Qatar Petroleum President & CEO H.E. Saad Al-Kaabi sign the agreement to proceed with construction of the Golden Pass LNG export facility, as U.S. Energy Secretary Rick Perry and Golden Pass Products CEO Sean Ryan look on. (Image courtesy of ExxonMobil)
Preliminary estimates indicate the project could generate up to $31 billion in U.S. economic gains and more than $4.6 billion in direct federal, state and local tax revenues over the life of the project, in addition to 16 million tons of LNG per year. During the five-year construction period, the Golden Pass LNG is anticipated to create about 9,000 jobs and more than 200 permanent jobs during operations. Working interests in the development are 70 percent Qatar Petroleum and 30 percent ExxonMobil.
Golden Pass is only a part of ExxonMobil’s plan to invest more than $50 billion over the next five years to build and expand manufacturing facilities in the U.S. The strategy includes the Growing the Gulf initiative, which is said to create about 45,000 jobs.
“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,” said Darren Woods, chairman & CEO of Exxon Mobil Corp., in a prepared statement. “The extensive experience of ExxonMobil and Qatar Petroleum provides the expertise, resources and financial strength needed to construct and operate an integrated liquefaction and export facility in the U.S.”
Also in the mix
Baker Hughes, a GE company, will supply turbomachinery equipment for the construction of the project. They will provide technology for three trains, consisting of six MS7001 EA heavy-duty gas turbines driving 12 centrifugal compressors. The MS7001 EA is the most utilized large industrial gas turbine available in the LNG market, with 77 units in operation in 13 countries. The MS7001 EA fleet offers best-in-class availability with proven power and extended maintenance intervals with more than 550,000 fired hours.
Golden Pass awarded the engineering, procurement and construction contracts to a joint venture of Chiyoda International Corp., McDermott International and Zachry Group. Furthermore, it executed a 20-year firm transportation agreement with Enable Midstream Partners and secured pipeline capacity on NGPL.
“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,” added Texas Governor Greg Abbott.
“Jefferson County is ready to see this project come to life,” Jefferson County Judge Jeff Branick said. “After the devastation of Hurricane Harvey, our region looks forward to the economic boost this project will bring and through its Opportunity Roadmap program, Golden Pass has laid the groundwork to make sure local residents and businesses have access to the opportunities.”
Video courtesy of Golden Pass LNG
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