The U.S. Department of Energy Grants Approval for Golden Pass LNG Terminal
The U.S. Department of Energy (DOE) has handed out its third liquefied natural gas (LNG) approval since President Donald J. Trump returned to the White House, enabling more time to start LNG exports from the Golden Pass LNG terminal (GPX) export project in Sabine Pass, Texas.
After Chris Wright, U.S. Secretary of Energy, approved an LNG export permit extension for the Golden Pass LNG terminal, the move was described as marking yet another step toward meeting President Trump’s commitment to unleash American energy dominance and restore regular order to LNG export reviews.
The approval, which will grant additional time to begin LNG exports from the Golden Pass LNG terminal, currently under construction in Sabine Pass, is interpreted to accelerate Trump’s pledge to restore American energy dominance.
Entergy Texas, Kinder Morgan (KMI), and Golden Pass LNG have teamed up to bolster Southeast Texas’ natural gas growth and address the rising energy demand. This LNG terminal, owned by QatarEnergy and ExxonMobil, is set to begin exporting its first LNG later this year.
Once operational, the terminal will become the ninth large-scale export terminal in the United States. Upon completion, Golden Pass will be able to export up to 2.57 billion cubic feet per day (bcf/d) of natural gas as LNG and is expected to bring unprecedented levels of LNG exports from the United States.
Secretary Wright underlined: “Exporting U.S. LNG supports American jobs, bolsters our national security, and strengthens America’s position as a world energy leader. President Trump has pledged to restore energy dominance for the American people, and I am proud to help deliver on that agenda with today’s permit extension.”
Since Port Arthur is portrayed as one of the few deepwater ports along the Gulf Coast suitable for LNG carriers, the $10 billion investment in infrastructure about 10 miles (16.09 kilometers) south of Port Arthur in Jefferson County on the Sabine-Neches Waterway is said to secure a perfect fit for an LNG terminal with an estimated annual send-out capacity of around 18 million tons.
After QatarEnergy and ExxonMobil hammered out the details to market independently LNG produced at the terminal, ExxonMobil LNG Asia Pacific (EMLAP) got the exclusive rights to market 30% of Golden Pass LNG volumes with QatarEnergy Trading marketing the remaining 70%.
According to DOE, the issuance of an export permit to Golden Pass marks the third LNG-related approval since President Trump took office, following an export approval to Commonwealth LNG on February 14 and an order on rehearing removing barriers for the use of LNG as bunkering fuel announced on February 28.
Tala Goudarzi, Acting Principal Deputy Assistant Secretary of the Office of Fossil Energy and Carbon Management, highlighted: “Golden Pass was the first project approved for exports to non-free trade agreement countries by DOE during the first Trump Administration, and it is gratifying that this project is so close to being able to deliver its first LNG.”
Given the LNG market fundamentals, another U.S. firm, NextDecade, is pondering an additional capacity expansion of its LNG export terminal at the Port of Brownsville, Texas, as LNG is believed to be poised for further growth in demand, driven by the slowdown in clean energy spending as a result of price volatility and political upheavals.