Exxon-Qatar JV Seeks US Approval for Texas LNG Re-Export

Exxon Mobil and QatarEnergy's joint venture, Golden Pass LNG, has requested U.S. regulatory approval to re-export liquefied natural gas starting October 1 as its Texas export plant nears completion. The re-export request involves importing LNG cargo to cool down the liquefaction trains, a necessary final step before full-scale production begins at the 18 million metric tons per annum facility. The project has faced significant delays and cost overruns, including the bankruptcy of lead contractor Zachry Holdings in March 2024, which cited at least $2.4 billion in budget overruns. Subsequently, McDermott International replaced Zachry as the lead contractor for Train 1 and is negotiating to take over construction of the remaining trains. Once operational, Golden Pass is expected to become the ninth LNG export terminal in the U.S., further strengthening the country's position as the world’s top LNG exporter. Despite the challenges, Exxon Mobil's stock is rated as an outperform with a positive price target outlook, though some analyses suggest a potential downside based on historical valuations.