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ExxonMobil's Golden Pass JV Seeks U.S. Nod to Re-Export LNG

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Key Takeaways

  • XOM's joint venture Golden Pass has requested U.S. approval to re-export LNG starting October 2025.
  • The LNG cargo would be used to cool liquefaction trains - an essential step before full-scale operations.
  • Golden Pass aims to be the ninth U.S. LNG exporter, with first shipments expected later this year.

Exxon Mobil Corporation’s (XOM - Free Report) joint venture with QatarEnergy, Golden Pass LNG, has requested U.S. regulatory approval to re-export liquefied natural gas (“LNG”) starting Oct. 1, 2025, per a Reuters report. This marks a critical step toward launching commercial operations at the long-delayed export facility located in Sabine Pass, TX.

The request involves re-exporting a cargo of LNG that the company plans to first import to cool down the liquefaction trains — a standard and essential final phase before full-scale LNG production begins.

XOM’s Golden Pass Project Still Under Construction

Per the report, Golden Pass is building an LNG export terminal with a planned capacity of 18 million metric tons per annum. Despite its scale and strategic significance, the project has been hampered by significant delays and cost overruns. Construction setbacks intensified earlier this year when lead contractor Zachry Holdings filed for bankruptcy in March 2024, citing project cost overruns of at least $2.4 billion.

Following Zachry Holdings’ exit, McDermott International stepped in as the new lead contractor for Train 1. The company is also reportedly in talks to assume construction responsibilities for the remaining two trains.

XOM JV Could Become Ninth U.S. LNG Exporter

Once operational, Golden Pass will become the ninth U.S.-based LNG export terminal. The United States is currently the world’s leading LNG exporter and the addition of Golden Pass will further bolster its global export capacity.

The first LNG shipments from the facility are expected later this year, assuming regulatory approvals and construction timelines remain on track.

XOM’s Zacks Rank & Key Picks

XOM currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at a few better-ranked stocks like Subsea 7 S.A. (SUBCY - Free Report) , W&T Offshore, Inc. (WTI - Free Report) and Oceaneering International, Inc. (OII - Free Report) . Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while W&T Offshore and Oceaneering International carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.

The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.

W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.

The Zacks Consensus Estimate for OII’s 2025 EPS is pegged at $1.79. The company has a Value Score of B.

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