Exxon and QatarEnergy's Golden Pass Joint Venture Produces First LNG in Texas

• Once fully operational, Golden Pass will produce 18 million metric tons per annum, with Train 1 adding 6 mtpa of new capacity (QatarEnergy receives over 4 mtpa, Exxon receives under 2 mtpa)
• The startup coincides with QatarEnergy declaring force majeure on production due to Middle East conflict, with damage potentially reducing output by 17% for up to five years
• The project experienced significant delays and cost overruns since 2019, including the bankruptcy of its original lead contractor

Summary: Golden Pass LNG Begins Production in Texas

Key Development:

Golden Pass LNG, a joint venture between QatarEnergy (70%) and Exxon Mobil (30%), has produced its first liquefied natural gas at its Texas facility on March 30, marking a significant milestone for one of America's largest LNG export projects.

Production Capacity:

The facility's first production unit (Train 1) adds 6 million metric tons per annum (mtpa) of LNG capacity. Once fully operational, Golden Pass will produce 18 mtpa total. Based on equity ownership, QatarEnergy will receive approximately 4 mtpa while Exxon receives nearly 2 mtpa.

Market Context:

The startup arrives amid critically tight global gas supply following Middle East conflict involving the U.S., Israel, and Iran. QatarEnergy, the world's second-largest LNG exporter, declared force majeure on March 24 after shutting facilities representing roughly 20% of global LNG supply. The company could lose about 17% of output for up to five years due to plant damage.

Project Challenges:

The $10 billion Golden Pass project has experienced significant delays and cost overruns since construction began in 2019, including the bankruptcy of its original lead contractor.

Market Impact:

Supply disruptions from Qatar have driven Asian LNG prices sharply higher, forcing some countries to switch to coal or restrict energy exports. Golden Pass's production comes at a crucial time, helping offset global supply constraints. The facility, located in Sabine Pass, Texas, is now positioned to deliver its first cargo and meet commercial targets.

Strategic Significance:

This development strengthens U.S. LNG export capacity during a period of geopolitical energy supply challenges, particularly affecting Qatar's production capabilities.