Exxon Mobil Corp and Qatar Petroleum have been expected to announce a joint venture next week, about proceeding with a $10 billion Texas LNG project, which would include an expansion of LNG (Liquefied Natural Gas) export facility in Texas, at least three sources familiar with the potential venture alongside the scale of transaction said on Friday, February the 1st, 2019.
According to the sources familiar with the transaction, ConocoPhilips, a third partner in the import terminal, would not be participating in the expansion plan, and they had also been planning to sell its 12.4 percent stake.
As analysts are emphasizing on a soaring LNG demand, which could even trigger a race between oil and gas companies keen to dominate the markets, the worldwide consumption of LNG is expected to get doubled by 2030. In the recent past, the gas production in United States had surged in to new records, boosted by the shale production.
Meanwhile, the demand for export capacity had also been enhanced by a substantial margin. Nonetheless, this potential $10 worth of expansion project would focus on capitalizing this new market dynamic. Apart from that, the investment is actually a part of Qatar Petroleum’s previous plan to invest over $20 billion in the US soil, as an effort to enhance its overseas gas and oil footmarks.
At this moment, the Exxon Mobil holds 30 percent stake of the project, while the Qatar Petroleum has been holding a 70 percent stake.