), has inked an agreement with Qatar Petroleum International to
proceed with the construction of a natural gas export terminal in
Texas, valued at $10 billion, as per Bloomberg reports.
Golden Pass Products LLC, a subsidiary formed by the two
companies, had mentioned through an email that the project will
entail setting up of liquefaction equipment at an existing import
facility in Sabine Pass, Texas.
Last year, the subsidiary had received regulatory approval to
export the fuel to nations having free-trade agreements with the
U.S., while the approval for shipment of fuel to other countries
is still pending.
Per the statement, ExxonMobil and state-owned Qatar Petroleum
intend to export around 15.6 million metric tons of gas per year
from the Golden Pass facility. A boom in the U.S. gas yield has
encouraged many to come up with numerous proposals to transport
the fuel. To facilitate shipment, the fuel is cooled to liquid
form at -260 degrees Fahrenheit (-162 Celsius), for volume
This agreement opens up a competitive commercial proposal for
Golden Pass Products that assures of building on the distinctive
combined strengths of Qatar Petroleum and ExxonMobil through the
global downstream liquefied natural gas (LNG) value chain.
For the last few years, ExxonMobil has been working toward
expanding its worldwide gas portfolio. The investments made by
the company include the 2010 purchase of XTO Energy in the U.S.
and funding of A$52 billion ($52 billion) for the Gorgon LNG
complex in Australia. Natural gas formed 50% of the total yield
during the first quarter of 2013.
ExxonMobil holds a Zacks Rank #3, which is equivalent to a
short-term Hold rating. However, there are other stocks in the
oil and gas industry like
Dawson Geophysical Company
SM Energy Company
Exterran Holdings, Inc.
) that appear more attractive in the short term. All three stocks
carry a Zacks Rank #1 (Strong Buy).
DAWSON GEOPHYS (DWSN): Free Stock Analysis
EXTERRAN HLDGS (EXH): Free Stock Analysis
SM ENERGY CO (SM): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis
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