Sources: Exxon has withdrawn its offer to sell the first two Golden Pass LNG cargoes

Two people who are familiar with this decision confirmed that Exxon Mobil retracted its offer to sell?two initial shipments of liquefied gas from the Golden Pass export facility in Texas, which was in the process starting up operations. Sources did not provide a reason, but according to data provided by financial firm LSEG, the plant was running at a third of capacity since production began late last month. Golden Pass, a joint-venture between Exxon, QatarEnergy, and LSEG, received 287 million cubic foot?per day on Thursday of natural gas to be liquefied. The first train of the plant has a capacity of 800 mcfd. LNG traders and producers typically offer cargoes during the 'commissioning phase', when plants are tested to make sure they operate as intended. The company was expected to load the first cargo of LNG for export in later this month. Exxon refused to comment and Golden Pass didn't immediately respond to a request for further information.

GOLDEN PASS HAS SUFFERED DELAYS, AND COST OVERRUNS

QatarEnergy owns 70% of the $10 billion project while Exxon holds 30%. The two companies own the LNG cargoes produced by the facility, but they do not have any long-term customers.

Train 1 will increase the LNG capacity by 6 million tonnes annually. Exxon previously stated that based on equity ownership, QatarEnergy would receive just over four mtpa while Exxon would receive just under two mtpa.

According to LSEG ship tracking data, the LNG carrier HL 'Sea Eagle', chartered by Exxon was in Gulf of Mexico on Thursday and indicated it was heading towards Golden Pass.

Golden Pass has been plagued by 'delays and cost increases' since construction began in 2019. This includes the bankruptcy of the original lead contractor. The company announced on March 30 that it had produced its very first LNG.

Golden Pass is yet to export LNG. Reporting by Curtis Williams and Marwa Rashed in Houston; editing by Nathan Crooks, Nick Zieminski and Nick Crooks

(source: Reuters)