Articles tagged Golden Pass

The natural gas export project underway on the upper Texas coast by Golden Pass LNG Terminal LLC will be delayed until the second half of 2025, ExxonMobil CEO Darren Woods confirmed Friday.

NO. 1: Golden Pass LNG’s feed gas pipeline is expected to be in service during the first half of 2025, but the timeline could be impacted by the Zachry Group’s bankruptcy filing last month, according to a field inspection report by FERC. 

June Nymex natural gas futures’ four-day rally stalled Tuesday as news of a bankruptcy filing by a lead contractor for a major LNG project spooked the market and as fundamentals turned slightly bearish.

Abruptly pausing what had been a relentless march higher in recent weeks, natural gas futures were pulling back through midday trading Tuesday after a contractor working on the Golden Pass LNG terminal filed for bankruptcy, fueling concerns over the export demand outlook. Meanwhile, pipeline congestion was keeping Southeast cash prices elevated.

Zachry Group, one of the construction firms working on the Golden Pass LNG terminal, disclosed it will eventually exit the project and has filed for bankruptcy amid reported financial and labor issues.

Natural gas futures flipped to gains and losses through midday trading Friday as the market weighed opposing LNG factors. For bears, interruptions to work at the Golden Pass liquefied natural gas project fed speculation about potential delays, while bulls cheered Freeport starting up a third train.

Golden Pass LNG confirmed interruptions on the Texas export project could be coming after reported worker furloughs, citing ongoing negotiations between its engineering, procurement and construction (EPC) contractors.

NO. 1: The Zachry Group told its hourly construction workers in an email this week not to show up at the Golden Pass LNG site in Texas until further notice. 

NO. 1: Golden Pass LNG’s timeline for starting production could slip further into 2025. A shortage of skilled workers and other construction issues are reportedly causing delays. 

The outlook for added feed gas demand in the coming months is beginning to firm, portending a possible tight supply balance next year.