Another US LNG monster goes ahead


Exxon Mobil and Qatar Petroleum on Tuesday announced a final decision to finance a $10 billion-plus project to export liquefied natural gas from the Texas Gulf Coast.

The decision moves forward the latest export terminal fueling growing shipments of U.S. LNG, or natural gas cooled to liquid form, for overseas travel. The Department of Energy last month forecast that LNG will play a major role in the U.S. exporting more energy than it imports by 2020, a feat the nation has not achieved in nearly 70 years.

The plan to export LNG from Exxon’s Golden Pass terminal speaks to the renaissance in U.S. energy production. The facility was originally built to import LNG, but the surge in U.S. natural gas production over the last decade means American drillers are now looking overseas for buyers.

Exxon says work to retool the terminal near Port Arthur, Texas, along the Louisiana border will begin this quarter. The oil giant expects the facility to start up in 2024 and says it will ultimately be able to produce roughly 16 million tons of LNG each year.

The pipeline remains absolutely staggering with nearly 80mtpa under construction, another 60mtpa approved:

And another 250mtpa in the offing:


And all of this with cheap local gas thanks to domestic reservation.

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

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  1. Divide et impera

    Just ONE of Russia’s new plants – Yammal plant (part of the One Belt One Road initiative) will export almost 20 mtpa at a cost of $29 Billion.. thats three times the size.


    Sakhalin-2 – 10 mta
    Arctic LNG-2 -18 mta
    Shtokman LNG 7.5 mta
    Far Eastern LNG -10 mta
    Pechora LNG -4 mta
    Baltic LNG Baltic – 15 mta

    That’s close to 90 MTA.

    But yeah….One Belt One Road – so totally irrelevant stuff.

    • Just read that there are in fact >25 LNG plants at FID stage. Many in the US. A massive wave coming… cannot reproduce it, sorry…