Ocean LNG to offtake and market LNG from Golden Pass project

Ocean LNG has reached a deal to handle the offtake and marketing of liquefied natural gas (LNG) to be produced and exported from the proposed Golden Pass LNG export project in Sabine Pass, Texas, US.

Earlier this year, the company signed a binding LNG sales and purchase agreement to purchase and offtake all the LNG volumes to be produced by Golden Pass LNG.

Ocean LNG is an international marketing company jointly owned by affiliates of Qatar Petroleum (70%) and ExxonMobil (30%).

Last month, Qatar Petroleum and ExxonMobil made a final investment decision (FID) on the Golden Pass LNG export project.

The companies will invest more than $10bn in the project that is expected to produce around 16Mtpa of LNG.

Ocean LNG will focus on marketing its US LNG volumes in the Asia-Pacific region through further engagements with both established customers and prospective buyers.

The JV will also look to maintain a strong presence across South America and Europe.

Qatar Petroleum president and CEO Saad Sherida Al-Kaabi said: “The FID of Golden Pass LNG earlier this year underpins Ocean LNG’s marketing efforts to deliver US LNG to customers across the globe.

“This is a further testament of Qatar Petroleum’s position as a global LNG leader with a large portfolio capable of offering tailored LNG supply structures and commercial terms in an evolving global LNG environment.”

Qatar Petroleum noted that the Golden Pass LNG export project offers shipping access to both the Atlantic and Pacific basin markets.

The project partners obtained all necessary regulatory approvals to facilitate the export of LNG.

Construction will begin soon and the exports are anticipated to begin in 2024.

A JV comprising Chiyoda International, McDermott International and Zachry Group was awarded the engineering, procurement and construction contracts for the Golden Pass LNG project.

During the construction period, the project is expected to provide 9,000 jobs.

The facility will have three liquefaction trains, each with a capacity to produce 5.2Mtpa.