Qatar-Exxon launches liquefied natural gas production in Texas

(Patria) - The joint venture of QatarEnergy and Exxon Mobil Corp. has started producing liquefied natural gas from the first of its three trains at a facility in Texas, marking an important milestone for U.S. fuel exports amid dwindling global supplies, Reuters reported.

The move lays the groundwork for the first shipment of Golden Pass LNG from its facilities located in Sabine Pass, Texas, QatarEnergy announced yesterday. Global exports from the eighteen million tonnes per year project are expected to begin in the second quarter of this year.

Golden Pass, a terminal near the Texas-Louisiana border, is poised to become a key source of supply after Iran's attack damaged Qatar's giant Ras Laffan facility in the Persian Gulf. Traders have been closely watching the project as it is one of the few gas export facilities on the U.S. Gulf Coast nearing completion.

About twenty percent of the world's liquefied natural gas supply has been halted as Iran almost blocks the Strait of Hormuz, paralyzing the flow of goods from the region. Most of that LNG went to Asia, where fuel prices have risen by about ninety percent since the start of the war.

Exxon said in a statement on Monday that exports from Golden Pass are likely to begin in the second quarter of this year. The final investment decision for the project, a 70-30 percent partnership between QatarEnergy and Exxon, was announced in 2019.

"Golden Pass LNG will strengthen U.S. energy production and solidify the nation's role as a reliable supplier to global markets, enhancing energy security and helping to meet world demand," Exxon said in a statement.

The United States is already the world's largest exporter of LNG, producing more than 116 million metric tons annually by 2025, according to data compiled by Bloomberg.