Houston LNG Project Update

HOUSTON (Reuters) – Federal regulators on Thursday granted Exxon Mobil (NYSE:XOM) and Qatar Energy LNG a 3-year extension to complete the Golden Pass LNG plant, according to a regulatory document.

The extension was due to delays caused when lead construction contractor Zachry Holdings filed for bankruptcy in March, as noted in a Federal Energy Regulatory Commission filing.

The project, located at the Sabine Pass site of a former gas-import terminal converted for natural gas LNG exports, is one of two large U.S. LNG facilities expected to significantly boost supplies from the world's top exporter of superchilled fuel in the next 12 months.

Zachry Holdings, the project's original main contractor, filed for Chapter 11 bankruptcy protection, citing that the Golden Pass project (GPX) was at least $2.4 billion over budget.

Golden Pass has yet to announce a new EPC contractor and is currently negotiating with McDermott International to assume the lead contractor role for the project.