Work is currently underway to add liquefaction and export capabilities to Golden Pass, an existing liquefied natural gas (LNG) import terminal near Sabine Pass, Texas. Developed in partnership by ExxonMobil and Qatar Petroleum, this is part of ExxonMobil’s five-year plan to invest $50 billion in the expansion of its U.S. operations.
The project represents a $10 billion investment in infrastructure on the Gulf Coast that will generate billions of dollars of economic growth and millions of dollars in tax revenue. Here, we break down this massive megaproject by the numbers.
2X the LNG demand in the next 10 years
Construction on the original Golden Pass LNG import project began in 2003, and the facility began receiving cargo in 2010. However, as new technology allowed the U.S. access to an abundant supply of natural gas domestically, the question arose: What role would the existing facility play in the evolving energy market? At present, worldwide consumption of LNG is expected to more than double to 550 million tons a year by 2030, triggering a race among oil and gas companies eager to dominate the market.
Sensing an opportunity, shareholders kicked off early plans for the Golden Pass liquefaction and export project in 2012.
5 years to complete construction
According to World Maritime News, this project 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 the existing infrastructure including five LNG storage tanks, two marine berths to accommodate the largest LNG carriers, and the existing 69-mile Golden Pass Pipeline system. Construction began earlier this year, and the companies expect to begin export operations in 2024.
30/70 split between ExxonMobil and Qatar Petroleum
ExxonMobil has a 30% stake in Golden Pass, while Qatar Petroleum holds 70%. The two have been strengthening a global alliance across LNG projects from the U.S. to Mozambique.
9,000 new construction jobs created
The project will generate tens of thousands of jobs across the life of the facility, including 9,000 construction jobs over the next five years. Once operational, the new export facility could generate about 3,800 permanent direct and indirect jobs, including 200 highly-skilled, permanent jobs in Texas.
16 million tons of LNG per year
That’s the expected capacity for the entire facility after completion, making it one of the largest LNG facilities in the world. The enterprise could have a $31 billion economic impact in the U.S. and has the potential to generate $4.6 billion in direct federal, state, and local tax revenues.
$1 billion+ contract for McDermott International
McDermott International (along with joint venture partners Chiyoda International Corp. and Zachry Group) has been awarded the “mega contract” for this project. McDermott said that the team will provide engineering, procurement, construction, and commissioning services.