Golden Pass LNG, a joint venture between QatarEnergy and ExxonMobil (NYSE:XOM), has achieved first production of liquefied natural gas (LNG) at its first liquefaction train, marking the transition of the facility from a receiving terminal into a major export hub as a global energy crisis emerges out of the Iran conflict.
Located in Sabine Pass, Texas, the three-train project will have a nominal capacity of approximately 18 million metric tons per annum (mtpa) when fully operational. The giant project is part of QatarEnergy’s broader strategy to invest $20 billion in the U.S. energy sector. It also serves as a critical component of the company’s global LNG portfolio expansion alongside the North Field Expansion project in Qatar.
Golden Pass LNG has faced construction delays and cost overruns, with the final cost of $10 billion+ about $2 billion over budget. The project encountered a major setback in 2024 after the lead contractor filed for bankruptcy leading to thousands of layoffs before new contractors could resume work. The other two trains are expected to come online in late 2026 and 2027.
The facility begins production at a time when Qatar’s energy sector is facing a severe crisis after Iran’s attacks on Qatar’s Ras Laffan Industrial City in March 2026 damaged key infrastructure. The attacks hit Qatar’s key LNG export hub capacity, with repairs to the affected LNG trains expected to take three to five years. Qatar could incur up to $20 billion in lost revenues per year while its Asian and European customers are bound to feel the heat from lost supplies.
Beyond the Golden Pass LNG project, there are several major LNG export terminals under construction in the United States including Venture Global’s Plaquemines LNG plant in Louisiana, Cheniere Energy’s (NYSE:LNG) Corpus Christi LNG Stage 3 in Texas, NextDecade Corp.’s (NASDAQ:NEXT) Rio Grande LNG project in Texas, Sempra’s (NYSE:SRE) Port Arthur LNG project, Venture Global’s CP2 LNG in Louisiana and Woodside Energy’s (NYSE:WDS) Woodside Louisiana project (formerly known as Driftwood LNG under Tellurian).
By Alex Kimani for Oilprice.com
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