Golden Pass, a joint venture between ExxonMobil and QatarEnergy, produces the first LNG in a new Texas facility

Golden Pass 'LNG, a joint-venture between QatarEnergy and Exxon Mobil has produced its first liquefied gas at its Texas facility, the company announced on Monday. This is a significant step towards bringing online one of the biggest U.S. Export projects.

The launch comes as global gas supplies are tightening after the U.S.-Israel-Iran war pushed up energy prices and caused disruptions in Qatar's production, which is one of the largest LNG suppliers.

In a press release, Alex Savva said, "Today we began producing LNG at our terminal in Sabine Pass. This marks the completion of an important effort to build, commission and start up?the first LNG Train."

Golden Pass, once fully operational, will be able to?produce 18 million metric tonnes per year. QatarEnergy owns 70% of the project, while Exxon holds 30%. Train 1, the first production unit, is expected to add a new capacity of 6 mtpa. According to the company, based on equity ownership, QatarEnergy would receive a little over 4 mtpa and Exxon would receive a little under 2 mtpa.

START-UP IS IN THE MIDDLE OF QATARENERGY FORCE MAJEURE QatarEnergy is the second largest LNG exporter in the world. It announced on March 24 that it would have to declare force majeure over its production due to the conflict in the Middle East. The company has closed down facilities which account for approximately 20% of global supply of LNG. It said that damage to those plants could result in the company losing up to 17% of current production for five years.

Golden Pass, a $10 billion project that began construction in 2019, has been plagued by delays and cost increases since its start. The original contractor who was to lead the project filed for bankruptcy. Golden Pass announced that the first LNG production will set?the stage to deliver its first cargo out of Sabine Pass in Texas.

The company said that the plant would be able meet its strategic and commercial goals and sustain liquefaction operations. The company said that the disruptions in?Qatar's supply have pushed Asian LNG prices up sharply and forced some countries to switch to coal to cope with the shortages.

(source: Reuters)