(MENAFN - The Peninsula) The Peninsula
Doha: Qatar Petroleum and ExxonMobil have taken the final investment decision for developing the Golden Pass LNG export project.
The project is located in Sabine Pass, Texas, and is owned by Golden Pass Products LLC — a joint venture between affiliates of Qatar Petroleum (70 percent) and ExxonMobil (30 percent).
The decision to proceed with the $10bn+ investment was announced during a special ceremony held in Washington D C yesterday under the patronage of H E Saad bin Sherida Al Kaabi, the Minister of State for Energy Affairs, President and CEO of Qatar Petroleum, and Rick Perry, the US Secretary of Energy.
The ceremony was also attended by the Chairman and CEO of Exxon Mobil Corporation, Darren Woods and other senior executives from Qatar Petroleum, ExxonMobil and Golden Pass LNG.
The final investment decision will pave the way for the construction of the Golden Pass LNG export facility, which will have a production capacity of about 16 million tonnes of LNG per year.
Project execution activities will commence in the near future, and are expected to create in excess of 45,000 direct and indirect full-time jobs in the US during the construction period, which is expected to take about five years.
It is estimated that the project will generate more than $35bn of economic benefits in the US including federal, state and local tax revenues over the life of the project.
Speaking at the ceremony, H E Al Kaabi thanked Secretary Perry for being part of this important event, and said 'your presence here today is a testament to the depth and strength of the strategic bilateral relations between the United States and the State of Qatar, and to the commitment of both sides for expanding and reinforcing bilateral cooperation in the field of energy.
The Minister added: 'The Golden Pass LNG export project is not our first investment in the United States, and is certainly not going to be our last. It represents a significant part of the plans that Qatar Petroleum had announced to invest $20bn in the US energy sector, which we believe would bring great benefits for both the United States and the State of Qatar.
Highlighting the significance of this event, in the context of the US LNG industry, H E the Minister, said, 'This investment of over $10bn is of a particular importance as one of the largest single investment decisions in US LNG history.
'I would like to take this opportunity to thank Darren Woods and the whole ExxonMobil organisation for our successful long-term partnership. I would also like to thank the management and staff of Golden Pass LNG, Chiyoda, McDermott and Zachry for all their efforts to get us to this important milestone. We will all continue working together towards the successful execution of this project, which will benefit the US economy and the neighbouring local communities in the US gulf coast. I would also like to thank the various state and federal agencies involved in the permitting and regulatory processes for their support.
H E the Minister added: 'The development of the Golden Pass LNG export facility enhances the depth and flexibility of our global LNG supply portfolio, and reinforces the position of the US as a key contributor to meeting the world's growing demand for LNG.
H E the Minister concluded by saying that, 'I would like to express our sincere gratitude to His Highness Sheikh Tamim bin Hamad Al Thani, The Amir of the State of Qatar, for his guidance and unwavering support to Qatar Petroleum. I would also like to thank the executive management team and employees of Qatar Petroleum for their hard work and dedication.
Rick Perry, the US Secretary of Energy, said 'Today's agreement is the latest example of the vital partnership between the US and Qatar - from American universities putting campuses in Qatar, to our strategic military relationship, and of course, our collaboration in the energy sector.
'The Golden Pass project is proof that two of the world's top energy producers can work together as allies to increase energy diversity, advance energy security, and support rather than subvert an open energy marketplace, Secretary Perry added.
The Chairman and CEO of ExxonMobil Corporation, Darren Woods, said 'Qatar Petroleum and ExxonMobil have for decades successfully demonstrated their capabilities of producing, shipping and marketing natural gas globally.
'We look forward to bringing our shared expertise to bear at Golden Pass, which will help to provide low-cost, cleaner-burning natural gas to meet growing global energy demand and improve living standards, added Woods.
The project's Engineering, Procurement and Construction (EPC) contract was awarded to a consortium comprising Chiyoda, McDermott and Zachry and was executed at the ceremony by senior executives representing the consortium together with Golden Pass LNG.