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Golden Pass LNG says in talks with contractor that could impact project work
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Golden Pass LNG says in talks with contractor that could impact project work
May 9, 2024 12:53 PM

May 9 (Reuters) - Golden Pass LNG, a joint venture

between QatarEnergy and Exxon Mobil ( XOM ), on Thursday said it

was in ongoing talks with a contractor that could have near-term

impacts on activity at its site, but it did not tell any

contractor to send workers home.

The joint venture is constructing a 2.4-billion cubic feet

per day liquefied natural gas (LNG) export plant in Texas, which

is slated to start up next year.

Calendar 2025 natural gas futures fell to $3.15

per million British thermal units (mmBtu) earlier in the

session, their lowest since February 2022, due in part to a

media report that Zachry Industrial Group workers were

furloughed. Energy traders said that could cause the plant to

start later than previously expected.

"Golden Pass did not tell any contractor to send workers

home. Golden Pass LNG acknowledges ongoing discussions regarding

the role of Zachry within CCZJV. Work continues to diligently

complete the project, but these discussions may impact site

activity in the near term," a spokesperson said in an email on

Thursday.

CCZJV is the joint venture between Chiyoda International

Corporation, McDermott International and Zachry Group, according

to the Golden Pass website.

Demand for natural gas is projected to rise in 2025 as

several LNG export plants enter service, including Golden Pass,

Venture Global's Plaquemines in Louisiana, Cheniere's Corpus

Christi expansion in Texas, and Sempra's ( SRE ) Costa Azul in Mexico.

The delay of any of those would reduce the growth expected

in gas demand next year.

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