Page 11 - NorthAmOil Week 36 2021

NorthAmOil PROJECTS & COMPANIES NorthAmOil

The Golden Pass
liquefaction plant is
being developed at
the site of an existing
import terminal.

Golden Pass LNG aims for 2024 start-up

TEXAS THE first train at the Golden Pass LNG terminal, be a better time to secure buyers. Indeed, Exx-
which is under construction in Texas, is sched- onMobil Qatar’s president, Dominic Genetti,
uled to enter service in 2024, according to com- expressed confidence over the timing of the pro-
ments made on a webinar hosted by US-Qatar ject’s development on the USQBC webinar.
Business Council (USQBC) recently. “I think the timing is going to be good
The three-train, 16mn tonne per year (tpy) in the market. And we’re looking forward
facility is being developed by Qatar Petroleum to start-up in 2024,” Genetti said. He added
(QP) and ExxonMobil at the site of an exist- that there were currently about 4,000 people
ing regasification terminal that was developed at the worksite. This comes after Golden Pass
prior to the shale boom, when the US antici- LNG indicated in a late August filing with the
pated becoming a major importer of gas. While US Federal Energy Regulatory Commission Former Qatari
the US does not generally need to import LNG (FERC), that it was progressing activities that
currently, the partners are planning to keep the included installing the foundation for the first Energy Minister
import terminal in order to have the flexibil- train, piling in Train 3 and erecting steel in a
ity to respond to any future changes in market new controls building. Abdullah Bin
conditions. Meanwhile, former Qatari Energy Minister
Construction of the liquefaction and export Abdullah Bin Hamad Al-Attiyah said Golden Hamad Al-Attiyah
capacity at the site involves an investment of Pass would likely supply QP’s European cus- said Golden
around $10bn. Unusually for a US facility, the tomers, freeing up the company’s domestic sup-
final investment decision (FID) on Golden plies to make up exports to other Middle Eastern Pass would
Pass was taken without any offtake agreements countries and Asia. Indeed, construction is cur-
being signed for the project. This is owing to rently underway on a giant expansion of QP’s likely supply
ExxonMobil and state-owned QP both hav- domestic liquefaction capacity. And the US and
ing sufficiently deep pockets to move forward Qatar are increasingly expected to compete in QP’s European
with such a major project. It subsequently also terms of LNG exports, but the partnership on customers.
emerged that the companies wanted to separate Golden Pass LNG, in which QP owns 70% while
the rationale for an FID for a liquefaction project ExxonMobil holds 30%, marks an exception to
from the ultimate execution of that project. this.
Discussions over potential offtake agree- Natural gas prices have risen to record highs
ments were subsequently reported to be under- this year, and some analysts expect them to nor-
way. No deals have been announced to date, malise around 2024-25 – when Golden Pass and
but with LNG demand growing and interest other projects that are part of a new wave of liq-
in supply agreements picking up, it may now uefaction capacity start coming online.™

Week 36 09•September•2021 www. NEWSBASE .com P11