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Exxon Mobil Corporation XOM and QatarEnergy’s $10 billion Golden Pass LNG project in Texas has received a crucial export extension from the U.S. Department of Energy. The new approval extends the deadline to begin exports from Sept. 30, 2024, to March 31, 2027, providing additional time to complete construction and commence operations.
Once operational, Golden Pass will be the ninth-largest liquefied natural gas (LNG) export terminal in the United States, with a daily export capacity of 2.57 billion cubic feet of LNG. The facility is expected to begin production in late 2025, with exports commencing shortly thereafter.
The extension followed a broader U.S. policy shift on LNG exports. While the Biden administration recently paused new LNG export approvals to assess economic and environmental impacts, this decision does not affect previously sanctioned projects like Golden Pass. Initially approved for exports to non-free trade agreement countries under the Trump administration, the project remains a key part of ExxonMobil’s long-term LNG growth strategy.
Golden Pass' developers requested a three-year construction extension last August, citing contractor changes that could delay full completion until November 2029. A company spokesperson emphasized that the extension provides necessary contingency time to address uncertainties inherent in large-scale infrastructure projects.
With QatarEnergy holding a 70% stake and ExxonMobil owning the remaining 30%, Golden Pass represents a crucial asset for ExxonMobil’s expanding LNG portfolio. The project is strategically positioned to serve growing energy demand in Asia and Europe, reinforcing the company’s role in the global LNG market.
As the United States maintains its position as the world’s largest LNG exporter, ExxonMobil’s Golden Pass project is set to play a significant role in meeting future energy needs despite ongoing regulatory and logistical challenges.
XOM’s Zacks Rank & Key Picks
Currently, XOM carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Antero Resources Corporation AR, NextDecade Corporation NEXT and EOG Resources, Inc. EOG. While Antero Resources presently sports a Zacks Rank #1 (Strong Buy), NextDecade and EOG Resources carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Resources, one of the fastest-growing natural gas producers in the United States, boasts a strategic acreage position in the low-risk properties of the Appalachian Basin. The company has more than two decades of premium low-cost drilling inventory in the prolific basin, securing a strong production outlook. AR is well-positioned to capitalize on the increasing demand for LNG, both in the United States and globally.