ExxonMobil (XOM) Negotiates With the US for Golden Pass Project
Exxon Mobil Corporation XOM is in discussions with the United States government to proceed faster with the Golden Pass liquefied natural gas (“LNG”) expansion project in Sabine Pass, per a report by S&P Global.
Golden Pass LNG is a joint venture between ExxonMobil and Qatar Petroleum. ExxonMobil holds a 30% stake in the joint venture, while its partner Qatar Petroleum owns the rest. The project is planned to come online in 2024.
The Golden Pass LNG expansion project is on schedule, but ExxonMobil is seeking approval to start up before the due date. The expansion would add natural gas liquefaction and export capacities to the existing facility in Sabine Pass, TX. The facility’s send-out capacity is estimated to be 18 million metric tons per year.
The Golden Pass facility was initially constructed for importing natural gas. ExxonMobil and its partner Qatar Petroleum decided to convert the facility into an export terminal by investing about $10 billion. ExxonMobil earlier emphasized that the Golden Pass LNG export project is part of its five-year massive investment plan.
With the commencement of the project, the companies will be able to export natural gas produced from the prolific shale fields in the United States. The joint venture intends to market its LNG volumes in various countries, where the demand for cleaner energy is on the rise.
Golden Pass represents a notable collaboration between the United States and Qatar, even though the nations are expected to compete for LNG market share in the future as global demand increases rapidly.
Company Profile & Price Performance
Headquartered in Irving, TX, ExxonMobil is one of the leading integrated energy companies in the world.
Shares of ExxonMobil have outperformed the industry in the past six months. The stock has gained 53.1% compared with the industry’s 29.9% growth.
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Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Marathon Petroleum Corporation MPC is a leading independent refiner, transporter and marketer of petroleum products. MPC currently has a Zacks Style Score of A for Growth and Momentum, and B for Value.
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