ExxonMobil's JV To Market Golden Pass LNG Export Volumes

Ocean LNG, a joint venture (JV) between Exxon Mobil Corporation (NYSE:XOM) and Qatar Petroleum, recently reached an agreement to manage the offtake and marketing of liquefied natural gas (LNG), which will be produced and exported from the proposed Golden Pass LNG export project. The facility is located in Sabine Pass, TX.

ExxonMobil holds 30% working interest in the JV, while its partner Qatar Petroleum owns the remaining 70%. The project is anticipated to come online in 2024. The partners have reached a final investment decision on the project this February. The Golden Pass terminal was initially constructed for importing natural gas. ExxonMobil and its partner Qatar Petroleum decided to convert the facility into an export terminal with an investment of roughly $10 billion. The largest publicly-traded energy player, ExxonMobil, earlier emphasized that the Golden Pass LNG export project is part of its five-year massive investment plan.

Every year, the development will be capable of producing roughly 16 million tons of LNG. With the commencement of the project, the companies will be able to export natural gas produced from the prolific shale fields in the United States. The JV intends to market its LNG volumes in the Asia-Pacific region, where demand for cleaner energy is on the rise. The export terminal of the project is perfectly placed to access both the Atlantic and Pacific basin markets.

Ocean LNG intends to have a significant presence in South America and Europe. Notably, ExxonMobil and Qatar Petroleum are collaborating to explore and develop resources in Brazil, Mozambique and Argentina. Hence, the Golden Pass terminal project will strengthen the relationship between the companies.

The engineering, procurement and construction works for the project will be carried out by a joint venture comprising McDermott International, Inc. (NYSE:MDR) , Chiyoda International and Zachry Group. The construction of the project is expected to create around 9,000 jobs. The facility will incorporate three liquefaction trains. Each train is expected to have an annual production capacity of 5.2 million tons.

Price Performance

Irving, TX-based ExxonMobil has lost 5.4% in the past year compared with 8.9% collective decline of the industry it belongs to.

Zacks Rank & Stocks to Consider

Currently, the company carries a Zacks Rank #3 (Hold). Investors interested in the energy sector can opt for some better-ranked stocks as given below:

Argentina-based YPF Sociedad Anonima (NYSE:YPF) is an integrated energy company. It delivered a positive average earnings surprise of 210.4% in the trailing four quarters. The stock currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fort Lauderdale, FL-based Seacor Holdings Inc. (NYSE:CKH) is an energy-related transportation and logistics company. In the first quarter of 2019, its earnings are expected to grow 118.8% year over year. The company currently holds a Zacks Rank #2.

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