Golden Pass LNG project in Texas sends first cargo to Belgium’s Zeebrugge terminal

The first cargo exported by the Golden Pass LNG terminal signaled a destination of Belgium's Zeebrugge LNG import terminal on April 23 as it was underway in the US Gulf Coast, S&P Global Commodities at Sea data showed.

Seven Atlantic-based LNG traders told Platts, part of S&P Global Energy, that the cargo, loaded by Golden Pass majority owner QatarEnergy, could be used to make up for some of the supplies from the energy giant's Ras Laffan facilities that were curtailed because of the war in the Middle East.

Three market participants said Italy's Eni was the likely buyer.

The carrier, Al Qaiyyah, departed Golden Pass on April 22, marking a major milestone for the ninth major LNG export terminal in the US. CAS data showed the ship was expected to arrive at the Belgian regasification facility on May 8.

QatarEnergy is historically the main supplier to Zeebrugge and remains the dominant capacity holder.

Qatar had previously highlighted Belgium as one of two European countries directly affected by Iranian attacks on Qatari LNG facilities in March amid the ongoing conflict. Italy is the other European country that QatarEnergy said would be directly affected by the damage to its LNG infrastructure.

The expected delivery of the Golden Pass cargo comes at a time when Atlantic LNG players have sold five prompt regasification slots on the secondary market, as DES LNG-TTF spreads remain "out of the money" for some Northwest European terminals, according to LNG traders.

New US supply

Golden Pass is owned 70% by QatarEnergy and 30% by ExxonMobil, with the companies independently marketing their shares of production.

Eni, QatarEnergy and the joint venture entity developing Golden Pass did not immediately respond to requests for comment on April 23. ExxonMobil declined to comment on commercial details.

QatarEnergy said in an April 23 statement that the export of the inaugural cargo was an important step toward full commercial and export operations.

"This is a significant industry milestone that marks a new chapter in QatarEnergy's global efforts to meet rising LNG demand and ensure reliable supplies to international markets," QatarEnergy CEO Saad al-Kaabi, who is also the Qatari energy minister, said in the statement.

Iranian missile strikes in mid-March on QatarEnergy's LNG facilities in Ras Laffan Industrial City damaged two of the energy giant's massive liquefaction trains, taking about 17% of the supplier's export capacity offline for three to five years. The trains represent about 12.8 million metric tons/year of capacity.

QatarEnergy said after the attacks that the damaged facilities would impact China, South Korea, Italy and Belgium and that the exporter would be compelled to declare force majeure for up to five years on some of its long-term contracts.

Meanwhile, the war continues to constrain transits of the Strait of Hormuz, keeping global LNG spot prices elevated and volatile. The waterway normally accounts for about 20% of global LNG supply -- primarily from Qatar.

Three-train project

The start of exports from the three-train Golden Pass project, which will be able to produce about 18.1 million mt/year, stands to offer some relief to the global LNG market. But the project would not come close to offsetting the more than 80 million mt/year that transited through the Strait of Hormuz in 2025.

The Golden Pass owners did not provide an update about the anticipated timeline for Train 2 and Train 3 coming online. Golden Pass said April 22 that commissioning and construction continue on both trains, "which are expected to come online in turn, following stable operation of Train 1."

S&P Global Energy CERA analysts expect Train 2 to start commercial operations in the fourth quarter, before Train 3 reaches the same milestone in the second quarter of 2027.

Golden Pass reached a final investment decision in early 2019 but experienced significant delays and cost overruns, ultimately leading to the 2024 bankruptcy of lead contractor Zachry Group, adding to the delays.

The project achieved first LNG production on March 30.

Platts assessed the June Platts JKM, the benchmark price reflecting LNG delivered to Northeast Asia, at $17.127/million British thermal unit on April 23, rising $1.105/MMBtu and nearly 7% from the previous assessment and standing about 60% higher than prewar levels.

In the Atlantic Basin, Platts assessed the DES Northwest Europe marker for June at $14.75/MMBtu on April 23, rising about 1% day over day but still standing almost 50% higher than before the conflict.

Platts assessed the FOB Gulf Coast Marker at $13.65/MMBtu on April 23, up 19 cents/MMBtu day on day, while still 45% higher than prewar levels from Feb. 27.