Oil & Gas Builder of Qatar-Exxon LNG facility files for bankruptcy By Reuters May 23, 2024, 9:33 AM Golden Pass LNG The under-construction Golden Pass LNG facility in Texas QatarEnergy owns 70% of export facility Constructor Zachry ‘forced to take action’ Exxon pledges full support of project Zachry Holdings, the lead contractor on the QatarEnergy and ExxonMobil Golden Pass LNG project in Texas, has filed for Chapter 11 bankruptcy protection. Zachry Holding’s share of the $10 billion Golden Pass project is valued at $5.8 billion. The company said it is pursuing a “structured exit”. “Because we have been unable to find a path forward, we have been forced to take action to protect our business,” John Zachry, CEO of the San Antonio, Texas-based company, said in a statement. NewsletterGet the Best of AGBI delivered straight to your inbox every week QatarEnergy owns a 70 percent stake in the Golden Pass LNG joint venture, and ExxonMobil owns the other 30 percent. Exxon said it would review construction timing and provide an update in the future. Golden Pass LNG is being built at the site of a former gas-import terminal that has been converted to process natural gas for LNG exports. Zachry Holdings said it faced cost challenges over a change order and billings schedule, and it engaged in negotiations with Golden Pass LNG for additional funding without success, according to its filing in the US Bankruptcy Court for the Southern District of Texas. Qatar bullish on LNG as it plans increased production Matein Khalid: Qatar’s role as LNG colossus will grow with North Field Qatar’s gas expansion plans to drive budget surplus until 2030 Prior to April 2024, Zachry said it was incurring weekly expenses of $30 million to $40 million for payroll, vendor payments, equipment and other costs, but was receiving approximately $70 million per month from Golden Pass LNG. “In March of this year, Golden Pass began direct-paying vendors, and clawed back much of those funds from advance progress payments due to Zachry,” the filing said. Unable to reach an agreement with Golden Pass, Zachry said it had no choice but to file for Chapter 11 protection. An Exxon spokesperson said the company planned to “continue to fully support Golden Pass LNG through completion”.
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