UK to Get LNG From Texas Under Exxon Deal
Energy giant Exxon Mobil has agreed a deal with Qatar Petroleum for the UK to import liquefied natural gas from their proposed €7.6 billion export project at Golden Pass in Texas.
The Financial Times reported that capacity would be made available at the South Hook receiving terminal at Milford Haven, south Wales, to take cargoes of LNG from Golden Pass. The companies would soon start negotiations on commercial details of the plan.
The sales would require US government approval. The deal was part of a framework agreement between the two companies to ship and market the entire planned production from Golden Pass of 15.6m tonnes of LNG a year. The subsidiary entity formed by Exxon and Qatar is Golden Pass Products LLC, which will oversea liquefaction equipment being installed in Texas.
Gas accounted for half of Exxon’s global production during the first three months of this year, according to Bloomberg. Exxon has been expanding its worldwide gas portfolio with acquisitions such as the 2010 purchase of XTO Energy in the US and investments in projects such as the $52 billion (€40bn) Gorgon LNG complex in Australia.
South Hook in Milford Haven was originally built to receive LNG from huge export projects in Qatar in the last decade.