Exxon Withdraws Initial Golden Pass LNG Cargo Offers Amid Plant Startup Issues
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Exxon Mobil has withdrawn its offer to sell two initial liquefied natural gas (LNG) cargoes from its Golden Pass export plant, a joint venture where Exxon holds a 30% stake.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.