Qatar and Exxon seek LNG exporting through Houston company
Jul 8, 2014, 8:16am CDT
Houston-based Golden Pass Products LLC has filed a federal application to export liquefied natural gas from its Sabine Pass facilities near Port Arthur.
The proposal is a $10 billion export project by Golden Pass Products, which is 70 percent owned by state-run Qatar Petroleum and 30 percent by Irving, Texas-based Exxon Mobil Corp. (NYSE: XOM). The facilities are owned by Golden Pass LNG, which is a joint venture with Qatar, Exxon Mobil and Houston-based ConocoPhillips (NYSE: COP).
Golden Pass LNG has submitted its application paperwork to the Federal Energy Regulatory Commission, which has only approved two LNG export permits thus far. Golden Pass commenced the National Environmental Policy Act pre-filing process with FERC in May 2013.
“This is a key step toward making the project a reality,” said Eric Pletcher, president of Golden Pass LNG, in the announcement. “To succeed in the permitting process requires years of work and investment and the determination of a strong team.”
A final investment decision is expected in 2015, after which Golden Pass Products would invest approximately $10 billion over five years to build the proposed facility. Golden Pass claims the effort would create about 45,000 direct and indirect jobs across the nation during the construction phase.
The company also is awaiting Department of Energy authorization for export to non-free trade agreement nations in Asia and Europe.
Houston-based Cheniere Energy Inc. (NYSE: LNG) and San Diego-based Sempra Energy (NYSE: SRE) are the only corporations to receive FERC approval thus far. Both are moving ahead with LNG export projects in Louisiana near the Texas border.
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