Exxon pulls offer to sell two initial Golden Pass LNG cargoes - Reuters
Exxon Mobil (XOM) has withdrawn an offer to sell two initial cargoes of liquefied natural gas from its Golden Pass export plant in Texas that has been in the process of starting up operations, Reuters reported Thursday.
Why ExxonMobil Canceled Two Initial Golden Pass LNG Shipments?
ExxonMobil has withdrawn offers to sell two initial liquefied natural gas (LNG) cargoes from its Golden Pass export facility in Texas, a move that comes as the plant is still in the early stages of startup and operating far below capacity Gas Processing & LNG+1.
Operational and Capacity Issues
According to LSEG data, the Golden Pass plant has been running at about one-third of its nameplate capacity since production began late last month, processing roughly 287 million cubic feet per day (MMcf/d) of natural gas for liquefaction Gas Processing & LNG+1. The first train has a capacity of 800 MMcf/d, and the facility’s first production unit (Train 1) will add 6 million tonnes per annum (mtpa) of LNG capacity Gas Processing & LNG.
Reasons for the Cancellation
While ExxonMobil has not publicly explained the exact reason, the withdrawal follows delays and cost overruns since construction began in 2019, including the bankruptcy of the original lead contractor Gas Processing & LNG+1. These issues have slowed ramp-up, and the plant has yet to export any LNG Pipeline and Gas Journal. LNG producers typically offer cargoes during the commissioning phase to test operations, but with current output levels, there may not be enough LNG to meet those offers Baird Maritime.
Ownership and Market Context
Golden Pass is a $10 billion joint venture between ExxonMobil (30%) and QatarEnergy (70%). The LNG produced is owned by both companies, which currently have no long-term customers for the volumes Gas Processing & LNG+1. This lack of guaranteed buyers adds to the risk of canceling early offers.
Broader Implications
The cancellation underscores the operational and financial challenges facing the project. If ramp-up continues to lag, Exxon may need to delay further cargo offers until production is more stable. For Exxon, this could impact its LNG strategy amid rising global demand, as delays could reduce its ability to capitalize on market opportunities.
In summary, the two LNG cargo offers were canceled because Golden Pass is still in startup, operating at only ~30% capacity, and facing ongoing delays and cost issues, leaving insufficient LNG to meet early market offers Gas Processing & LNG+2.
https://gasprocessingnews.com/news/2026/04/exxon-withdraws-offer-to-sell-two-initial-golden-pass-lng-cargoes/
Not everything is a conspiracy. Most likely a logistical or contractual motive
Likely an economic decision with a higher offer recently received with better terms, or our 70% partner trying to cover a shortfall to a favored customer, but this is simply a guess.