ExxonMobil, Qatar Petroleum to build LNG export terminal in Texas

09 May 2013 23:27  [Source: ICIS news]

HOUSTON (ICIS)--US petroleum giant ExxonMobil and Qatar Petroleum International (QPI) have signed an agreement to build a liquefied natural gas (LNG) export facility at a terminal in Sabine Pass, Texas, the companies announced through their joint subsidiary, Golden Pass Products, on Thursday.

When completed, the $10bn (€7.6bn) export facility will be able to export 15.6m tonnes/year of LNG, Golden Pass said in a press release.

The construction phase would create about 45,000 direct and indirect jobs across the US, the company said.

No timetable for completion of construction or start-up of operations was given.

Golden Pass has received US Department of Energy (DOE) authorisation for exports to Free-Trade Agreement (FTA) countries, and is awaiting DOE approval to export to non-FTA countries, the company said.

Also, Golden Pass is in preparations for the Federal Energy Regulatory Commission (FERC) permitting process, the company said. It anticipates pre-filing soon.

“This agreement sets out a highly competitive commercial blueprint for Golden Pass Products, with a commitment that builds on the unique combined strengths of QPI and ExxonMobil throughout the global downstream LNG value chain,” said Bill Collins, president of Golden Pass Products.

Exporting natural gas as LNG has been a hot topic of debate in the petrochemical sector, a business that relies on natural gas for about 85% of its feedstock requirements.

In December, the US Department of Energy (DOE) released a report that analyses the effects that LNG exports could have on the US.

Dow Chemical spoke out against the report, saying it failed to consider the importance of manufacturing to the US economy.

Since then, a coalition has been formed to campaign for the restriction of natural gas exports. The America’s Energy Advantage recently called the DOE to consider a separately funded LNG study on pending export project applications. 

However, ExxonMobil has been on the other side of the fence, saying that restricting LNG exports could hurt the US economy.

Additional reporting by Tracy Dang and Al Greenwood

($1 = €0.76)

By: Jeremy Pafford
+1 713 525 2653

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