The Golden Pass LNG project, a massive $10 billion venture backed by ExxonMobil and QatarEnergy, is poised to become a key player in the global liquefied natural gas (LNG) market. However, the project’s path has been anything but smooth. With a series of delays caused by contractor bankruptcy and the threat of severe weather, the joint venture recently secured a three-year extension from the Federal Energy Regulatory Commission (FERC) to ensure the facility’s completion. Despite the hurdles, the project remains a cornerstone in the future of U.S. energy exports.
From Import to Export: The Vision of Golden Pass LNG
Golden Pass LNG is located at Sabine Pass, Texas, a site that once served as a natural gas import terminal. Recognizing the growing global demand for LNG, the joint venture decided to repurpose the site for export operations. The facility is designed to produce 18 million metric tons of LNG annually, making it a significant addition to the U.S. export landscape.
With global LNG demand rising, particularly in Europe and Asia, Golden Pass LNG is well-positioned to meet the needs of energy-hungry markets seeking reliable, lower-emission alternatives to coal. Alongside another large U.S. LNG project, the completion of Golden Pass will solidify the United States as a global LNG export leader.
Delays, Bankruptcy, and a New Timeline
The project encountered a significant setback when its primary contractor, Zachry Holdings, filed for Chapter 11 bankruptcy in March 2024. Cost overruns totaling $2.4 billion crippled the contractor, forcing ExxonMobil and QatarEnergy to scramble for alternatives to keep the project on track. As delays mounted, the joint venture formally requested an extension from FERC in August, citing both contractor issues and weather risks.
Recognizing the complexity of the situation and the importance of the project to U.S. energy infrastructure, regulators granted a three-year extension. This decision provides a buffer for the joint venture to navigate hurricane threats and ensure safe construction practices during the final phases of the build.
The Search for a New Contractor
With Zachry Holdings out of the picture, ExxonMobil and QatarEnergy are actively searching for a new engineering, procurement, and construction (EPC) contractor. Reports suggest that McDermott International is a strong candidate to take over. The company’s experience in large-scale energy projects makes it a logical fit, though the outcome of these negotiations will determine the project’s ultimate path forward.
If McDermott is officially appointed, the joint venture could benefit from new efficiencies and construction expertise, helping them stay on course for the updated timeline.
Full Steam Ahead: Production by 2025
Despite the delays, ExxonMobil and QatarEnergy are committed to starting production by the end of 2025, with the goal of achieving full commercial operations shortly after. The project’s completion will be a major milestone for the U.S. LNG industry, providing much-needed export capacity to meet the global appetite for superchilled fuel.
The timing is especially critical given the geopolitical tensions affecting energy supply chains, with Europe seeking alternatives to Russian gas and Asia’s demand continuing to grow. Golden Pass LNG will play a vital role in bridging this global energy supply gap.
A Strategic Win for U.S. LNG
Golden Pass LNG is more than just another export facility—it’s a strategic asset that underscores the importance of energy cooperation between the United States and Qatar. As one of the world’s largest LNG producers, Qatar’s partnership with ExxonMobil not only bolsters the technical and financial resources of the project but also strengthens diplomatic and economic ties between the two countries.
Once operational, the facility will contribute to the diversification of global energy supplies, providing flexibility to countries seeking to reduce their carbon footprints. In addition, the U.S. will expand its share of the global LNG market, creating economic benefits domestically while enhancing energy security worldwide.
Conclusion: A Project Worth the Wait
Though the Golden Pass LNG project has faced unexpected challenges, the three-year extension granted by regulators provides the breathing room needed to complete construction and begin production safely. With McDermott International potentially stepping in as the new contractor and ExxonMobil and QatarEnergy firmly committed to their revised timeline, the future looks bright for Golden Pass LNG.
As the project races toward its 2025 production target, the energy world is watching closely. The successful launch of Golden Pass will not only mark a new chapter for U.S. energy exports but also reshape global LNG supply chains. In an era of energy transition, the completion of Golden Pass LNG will stand as a testament to the importance of perseverance, strategic partnerships, and adaptability in the energy industry.
