Ruling Paves Way to Restart Work on Exxon’s Texas LNG Plant
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A bankruptcy judge on July 24 approved a settlement between the joint venture building Exxon Mobil Corp.’s $10 billion gas export project in Texas and lead contractor Zachry Holdings, allowing other companies to finish work on the plant.
The decision caps months of delays at the Golden Pass liquefied natural gas facility under construction near the Louisiana border. San Antonio-based Zachry, citing cost overruns on the project, filed for bankruptcy in May and jettisoned thousands of workers, grinding work nearly to a halt.
Judge Marvin Isgur, of the U.S. Bankruptcy Court for the Southern District of Texas, said he had no reservations approving the settlement, calling the unfinished facility “one of the major construction projects in the world right now.”
QatarEnergy is a 70% majority shareholder of Golden Pass LNG, with Exxon Mobil Corp. as its partner for the remaining 30%.
The settlement, filed July 19, calls for handing over Zachry’s unfinished work to McDermott International unit CB&I and Chiyoda International Corp. What’s unclear is how soon the project could restart construction and reach completion. First LNG cargoes had previously been expected in the first half of 2025.
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