Golden Pass LNG just hit a major milestone. The joint venture between QatarEnergy and Exxon Mobil produced its first liquefied natural gas at a new facility in Sabine Pass, Texas, the company announced on Monday. The achievement brings one of the largest U.S. export projects a step closer to full operations.
Exxon said the plant expects to ship its first cargo during the second quarter. Once all units are running, Golden Pass will have the capacity to produce 18 million metric tons of LNG per year.
“Today, we began producing LNG at our terminal in Sabine Pass, marking the completion of a significant effort to construct, commission, and start up the first LNG train,” said Alex Savva, president and CEO of Golden Pass.
A long road to first gas
The $10 billion project has not been smooth. Construction began in 2019, and the venture faced repeated delays and cost overruns along the way. At one point, the original lead contractor went bankrupt. Still, the team pushed forward — and Monday’s production marks the payoff.
Train 1, the facility’s initial production unit, adds 6 million metric tons per year of new LNG capacity. QatarEnergy holds a 70% stake in the venture, while Exxon owns the remaining 30%. Based on those shares, QatarEnergy will receive just over 4 million metric tons annually. Exxon’s portion comes in just under 2 million.
Why the timing matters
Golden Pass arrives at a critical moment for global energy markets. Gas supplies around the world have tightened sharply after conflict in the Middle East disrupted output in Qatar — one of the planet’s biggest LNG suppliers.
On March 24, QatarEnergy declared force majeure on its production, citing war-related damage. The company said it shut in facilities that account for roughly 20% of global LNG supply. Worse still, damage to those plants could leave QatarEnergy without about 17% of its current output for up to five years.
As a result, Asian LNG prices have surged. Some countries have turned to coal or restricted energy exports to cope with the shortages. Against that backdrop, new U.S. supply carries extra weight.
What Golden Pass means for U.S. energy
Exxon framed the project in strategic terms. The company said Golden Pass “will strengthen U.S. energy production and reinforce the nation’s role as a reliable supplier to global markets.”
With Qatar’s own output under pressure, the timing gives Golden Pass an outsized role in filling the gap. The plant is now positioned to sustain liquefaction operations and meet both its commercial and strategic targets, according to the company.
For the venture’s backers, Monday’s milestone caps years of setbacks — and opens the door to a facility that could reshape the U.S. export landscape at a moment when the world needs it most.