FERC Grants Exxon And Qatar Three-Year Extension To Build Golden Pass LNG

The U.S. Federal Energy Regulatory Commission has granted a three-year extension to ExxonMobil and QatarEnergy to build their $10-billion Golden Pass LNG export plant in Texas, Reuters reports, citing an FERC filing.

The federal regulator extended its authorization for construction after Golden Pass hit a snag earlier this year and faces delays due to the bankruptcy of Zachry Holdings, the lead construction contractor of the LNG project.

These delays were the reason for FERC’s extension, according to the document seen by Reuters.

In August, Golden Pass LNG, the Exxon-QatarEnergy joint venture developing the project, applied with the FERC for the three-year extension until November 30, 2029.

Earlier in August, Exxon said it is delaying the start-up of its Golden Pass LNG export project in Texas to late 2025 from the first half of next year after work at the facility stalled following the bankruptcy of the lead contractor.

The delay in the timeline for the start-up means that Exxon and its partner in the project, Qatar’s state firm QatarEnergy, will launch the export plant about six months later than originally scheduled, Exxon’s chief financial officer Kathy Mikells told Bloomberg at the time.

In a setback for the $10-billion project, the lead contractor Zachry Holdings initiated a voluntary court-supervised Chapter 11 process in May and fired thousands of workers.

As a result, progress on the LNG export project at Sabine Pass, Texas, stalled.

Zachry said in June that the U.S. Bankruptcy Court for the Southern District of Texas had approved its settlement agreement with Golden Pass LNG Terminal LLC and joint venture partners CB&I LLC and Chiyoda International Corporation.

The court decision paved the way for the resumption of work at the project as the settlement allows Golden Pass to resume construction on an expedited basis while Zachry exits the project.

Source: Oilprice.com