Exxon withdraws offer to sell two initial Golden Pass LNG cargoes
ExxonMobil has withdrawn an offer to sell two initial cargoes of liquefied natural gas from its Golden Pass export plant in Texas that's been in the process of starting up operations, two people familiar with the decision said.
The sources did not give a reason for the withdrawal, but the plant has been running at around a third of its capacity since it began production late last month, according to data from financial firm LSEG.
Golden Pass, a joint venture between Exxon and QatarEnergy, took in about 287 million cubic feet per day of natural gas on Thursday to be liquefied for export. The plant’s first train has a nameplate capacity of 800 mcfd.
LNG producers and traders typically offer cargoes to potential buyers during the commissioning phase, when plants are tested to ensure they are operating as designed. The company had been expected to load its first cargo for export later this month.
Golden Pass has faced delays and cost overruns. QatarEnergy holds a 70% stake in the $10 billion project, while Exxon owns 30%. LNG cargoes produced at the facility are owned by the two companies, which do not have long-term customers for the volumes.
The facility's first production unit, Train 1, will add 6 million tonnes per annum of LNG capacity. Based on equity ownership, QatarEnergy will receive just over 4 mtpa and Exxon just under 2 mtpa, Exxon has previously said.
The LNG carrier HL Sea Eagle, chartered by Exxon, was in the Gulf of Mexico on Thursday and signaling it was heading to Golden Pass, according to LSEG ship‑tracking data.
The Golden Pass project has faced delays and cost overruns since construction began in 2019, including the bankruptcy of its original lead contractor. The company said on March 30 it had produced its first LNG.
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