Golden Pass LNG extension

Posted by Admin October 25, 2024 World

Golden Pass LNG Terminal (GPLNG) is in discussions with McDermott International to become the lead contractor of the liquefied natural gas (LNG) project. Credit: Audio und werbung/Shutterstock.

ExxonMobil and Qatar Energy JV GPLNG has been granted a three-year extension by the US Federal Energy Regulatory Commission (FERC) to complete the Golden Pass LNG plant in Texas, reported Reuters, citing a regulatory document.

On 28 August 2024, GPLNG requested an extension until 30 November 2029 to complete and activate its export terminal project in Texas.

Initially, the FERC authorised GPLNG in December 2016 with a completion deadline of 21 December 2021. The deadline was later extended to 30 November 2026, but ongoing delays have led GPLNG to request for another extension.

Delays are attributed to the bankruptcy filing of the lead construction contractor, Zachry Holdings, schedule uncertainties due to a new contractor, and possible external factors such as hurricanes, as well as time needed for commissioning.

Zachry Holdings has filed for Chapter 11 bankruptcy protection, citing that the Golden Pass project exceeded its initial budget by at least $2.4bn, reported the news agency.

With the project’s main contractor in bankruptcy, GPLNG is currently in talks with McDermott International to take over as the lead contractor.

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The Golden Pass LNG project, located at a converted gas-import terminal in Sabine Pass, is expected to play a pivotal role in expanding LNG supplies from the US.

Last month, ExxonMobil announced a $10bn investment in Nigeria’s offshore oil operations, with a focus on the Owo deep-water project.

ExxonMobil aims to boost oil production by 50,000 barrels per day in the coming years and will allocate around $2.5bn annually for production enhancements.

During the same period, ExxonMobil also signed a framework agreement with Japan’s Mitsubishi to collaborate on a hydrogen and ammonia facility in Texas.