Skip to content Skip to Search
Skip navigation

Builder of Qatar-Exxon LNG facility files for bankruptcy

The under-construction Golden Pass LNG facility in Texas 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.



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.

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”.

Latest articles

Shoppers choose vegetables in Istanbul; inflation means people are spending on essentials

Turkish retailers’ confidence wavers as inflation bites

Confidence is falling among Turkish retailers, according to a survey from the country’s statistics agency Turkstat. Shoppers have been scaling back on big-ticket purchases, spending instead on basic consumer goods as inflation piles pressure on household incomes. May’s business confidence report, released by Turkstat on June 24, showed sentiment in the retail sector at its […]

Water is handed out to pilgrims in Mecca. Hundreds of pilgrims without a Hajj permit died during extreme heat last week

Egypt shuts down 16 travel companies after Hajj tragedy

Egypt has withdrawn the operating licences of 16 travel companies for organising unlicensed Hajj trips to Saudi Arabia. A statement from the Egyptian government said the companies would be prosecuted and fined, with the funds used to compensate pilgrims’ families for their loss.  Hundreds of Egyptians were among 1,301 people who died of exposure to […]

Spinneys plans to open another 12 stores in Saudi Arabia by 2028

Spinneys opens first Saudi supermarket in Riyadh

Spinneys has opened its first supermarket in Saudi Arabia and is planning a further 12 stores in the country by 2028. The UAE supermarket operator listed on the Dubai Financial Market last month and raised AED1.38 billion ($375.7 million) from its initial public offering, which was oversubscribed almost 64 times. The first Spinneys in Saudi […]

Ooredoo ad in Doha. The company is investing $1bn to increase its data centre capacity

Qatar’s Ooredoo signs AI deal with chipmaker Nvidia

US chipmaker Nvidia has signed a deal with Qatari telecommunications provider Ooredoo Group to bring its artificial intelligence technology to five countries in the Middle East, the companies announced on Sunday.  Ooredoo will be the first company in the region to offer direct access to Nvidia’s AI and computer chips to its customers in Qatar, […]