IPPToday #351: ExxonMobil and Qatar Petroleum to proceed with US$10 billion LNG project in Texas
- Exxon Mobil Corporation
- Qatar Petroleum
- Chiyoda Corporation
- McDermott International Inc.
- Zachry Group
- Enable Midstream Partners
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ExxonMobil and Qatar Petroleum have announced a final investment decision to proceed with development of the Golden Pass LNG export project located in Sabine Pass, Texas.
The US$10+ billion liquefaction project will have capacity to produce around 16 million tons of LNG per year. It will include three liquefaction trains, each approximately 5.2 million tons per year, as well as other associated utility systems, interconnections to the existing facility and the expansion of the facility’s storm protection levee system.
It will utilize existing infrastructure including five 155,000 m3 LNG storage tanks, two marine berths to accommodate the largest LNG carriers, and the existing 69-mile (111km) Golden Pass Pipeline system with access to U.S. markets.
Additionally, the project contemplates the addition of compressor stations to the existing pipeline to facilitate receipt and redelivery of 2.6 billion cubic feet per day of natural gas supply to the facility.
Engineering, procurement and construction contracts for the project have been awarded to a joint venture of Chiyoda International Corporation, McDermott International Inc. and Zachry Group.
The developers have also executed a 20-year firm transportation agreement with Enable Midstream Partners and secured pipeline capacity with the Natural Gas Pipeline Company of America (NGPL), which transports LNG from the Texas Permian Basin and Gulf of Mexico (southern USA) to the Chicago area (Midwestern region).
Construction will begin in the first quarter of 2019 and the facility is expected to start up in 2024.
Preliminary estimates by an independent study indicate the project could generate up to US$31 billion in U.S. economic gains and more than US$4.6 billion in direct federal, state and local tax revenues over the life of the project.
Working interests in the Golden Pass LNG export project are 70% Qatar Petroleum and 30% ExxonMobil.