Exxon-QatarEnergy JV Golden Pass Produces First LNG at New Texas Facility
XOM sits 78% above its 52-week low of $97.8.
Summary
Exxon Mobil's joint venture, Golden Pass LNG (30% owned by Exxon), has commenced production of its first liquefied natural gas (LNG) at its new facility in Sabine Pass, Texas. This marks a significant operational milestone for one of the largest U.S. LNG export projects. The startup of Train 1, which adds 6 mtpa of capacity (with Exxon receiving just under 2 mtpa based on equity ownership), comes amid a period of tight global gas supply, further exacerbated by recent geopolitical events and QatarEnergy's declaration of force majeure on some of its production. This new production capacity is a positive development for Exxon, contributing to its strategic goal of boosting oil and gas output, as reaffirmed in recent news, and provides a new revenue stream. Traders will monitor the ramp-up of the remaining trains at Golden Pass and the timing of its first cargo delivery.
At the time of this announcement, XOM was trading at $174.24 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $726B. The 52-week trading range was $97.80 to $176.41. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.