Qatar Petroleum and ExxonMobil have taken the final investment decision for developing the Golden Pass LNG export project, located in Sabine Pass, Texas, and owned by Golden Pass Products LLC – a joint venture between affiliates of Qatar Petroleum (70%) and ExxonMobil (30%).
The decision to proceed with the US$10+ billion investment was announced during a special ceremony held in Washington, DC this week, under the patronage of the Minister of State for Energy Affairs HE Saad Sherida Al Kaabi, also the President and CEO of Qatar Petroleum, and Rick Perry, the US Secretary of Energy.
The ceremony was also attended by the Chairman and CEO of Exxon Mobil Corporation Darren Woods, and other senior executives from Qatar Petroleum, ExxonMobil and Golden Pass LNG.
The final investment decision will pave the way for the construction of the Golden Pass LNG export facility, which will have a production capacity of about 16 million tonnes of LNG per year. Project activities will commence in the near future, and are expected to create in excess of 45,000 direct and indirect full-time jobs in the US during the construction period, which will take at least five years. It is estimated that the project will generate over US$35 billion of economic benefits in the US including federal, state and local tax revenues over the life of the project.
During the ceremony, Al Kaabi said that the Golden Pass LNG export project is not Qatar’s first investment in the United States, and is certainly not the last. He said that the project represents a significant part of Qatar Petroleum’s plans to invest US$20 billion in the US energy sector, which he said would bring great benefits for both the United States and the State of Qatar.
Secretary Perry said the agreement is the latest proof of the vital partnership between the US and Qatar – from American universities setting up campuses in Qatar, to strategic military relationship, and their collaboration in the energy sector.
The Golden Pass project is proof that two of the world’s top energy producers can work together as allies to increase energy diversity, advance energy security, and support rather than subvert an open energy marketplace.’
The project’s Engineering, Procurement and Construction (EPC) contract was awarded to the Chiyoda, McDermott and Zachry consortium.
Aside from Secretary Perry, Al Kaabi also held talks with US Assistant Secretary of State for Energy Affairs Frank Fannon to discuss various aspects of energy cooperation between the US and Qatar.
For more information about Qatar Petroleum, visit their website at qp.com.qa.