The joint venture between QatarEnergy and Exxon Mobil Corp. has started liquefied natural gas production from the first of its three trains at a facility in Texas, marking a major milestone for U.S. exports of the fuel as global supplies dwindle.
The move sets the stage for Golden Pass LNG to deliver its first cargo from its facilities located in Sabine Pass, Texas, QatarEnergy said in a statement Monday. Global exports from the 18 million tons per annum project are now expected to start in the second quarter of this year.
Golden Pass, a terminal near the Texas-Louisiana border, is poised to be a critical source of supply after Iran strikes damaged Qatar’s giant Ras Laffan facility on the Persian Gulf. Traders had been closely following the project as it is one of a few gas export facilities on the U.S. Gulf Coast that are close to being completed.
About 20 percent of the world’s supply of LNG is sidelined as Iran all but blocks the Strait of Hormuz, paralyzing the flow of commodities from the region. Most of that LNG went to Asia, where prices for the fuel have surged about 90 percent since the start of the war.
