Golden Pass LNG, owned by Qatar Energy and oil major Exxon Mobil, expects to start production on the first of three Texas processing units in the second half of 2024. The full, 18 million metric tons of LNG per annum (MTPA), project would be in operation by 2025, the company has said.
Venture Global LNG, which is building its $21 billion Plaquemines LNG plant, also aims to produce first LNG in the second half of 2024 and be fully running the following year. It will be able to produce 20 MTPA when completed.
Both are competing to get underway before rivals do, and before renewable projects can siphon gas demand, which had risen at an average annual rate of 2.5%, according to consuming nations group International Energy Agency (IEA).
“The tidal wave of new global LNG capacity is set to crest in 2026 and remain strong through 2027,” according to the Institute for Energy Economics and Financial Analysis. The many LNG projects in development suggests the market will be unable to “absorb that much new supply so quickly” if all are built, it wrote.
The Qatar/Exxon and Venture Global LNG projects are competing to secure sales at current prices, said Alex Munton, director of gas & LNG research at consultants Rapidan Energy Group.
“There is a financial windfall for companies as prices will soften by 2028 as more capacity comes online from other projects in the U.S. and globally”, said Munton.
Golden Pass LNG appears to have the inside track. It recently sought approval to add fuel gas to the plant in November. And it won regulatory approval to construct the facility on a 24-hour, seven day a week schedule.
It could produced first LNG by the second quarter next year, estimated consultancy Energy Aspects, ahead of schedule.
Venture Global LNG, which declined to comment, has not received similar approval to accelerate its construction.
“The ability to manage our schedule, which included bringing more people to the site or to increase the flexibility, all that was critical to meeting our startup time,” said Renwick DeVille, Golden Pass LNG’s senior advisor for public and government affairs.
(Reporting by Curtis Williams in Houston; Editing by David Gregorio)
Share This:
