Exxon Withdraws Initial Golden Pass LNG Cargo Offers Amid Plant Startup Issues
XOM sits 50% above its 52-week low of $101.185.
Summary
Exxon Mobil has withdrawn its offer to sell two initial liquefied natural gas (LNG) cargoes from its Golden Pass export plant, a joint venture where Exxon holds a 30% stake. This news follows an April 2 report indicating the facility was preparing to load its first export cargo. Sources suggest the withdrawal is due to the plant running at only about one-third of its nameplate capacity since production began late last month, adding to previous delays and cost overruns for the $10 billion project. While the immediate financial impact of two cargoes is modest for Exxon's scale, this signals operational challenges in bringing a significant new LNG asset online, potentially impacting future revenue ramp-up. Traders will be watching for updates on the plant's commissioning progress and when cargoes will be re-offered.
At the time of this announcement, XOM was trading at $151.73 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $632.2B. The 52-week trading range was $101.19 to $176.41. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.