Exxon Mobil, the largest energy company by market value, has reached a deal with Qatar Petroleum International to export liquefied natural gas (LNG) to the UK from their proposed $10 billion export project at Golden Pass in Texas.
The two companies also agreed to make capacity available at their joint company South Hook LNG Terminal at Milford Haven in Wales to ship cargo of LNG according to The Dallas Morning News.
The two companies are currently engaging in discussions to chart out commercial details of the sales, which will then become subject to the approval of the US government.
"This agreement sets out a highly competitive commercial blueprint for Golden Pass Products, with a commitment that builds on the unique combined strengths of QPI and Exxon Mobil through the global downstream LNG value chain," Bill Collins, president of Golden Pass, said in a press statement.
The government only allows gas to be exported to 20 countries in which the U.S. already has free trade agreements with locations like South Korea, Australia and Panama. Companies have been looking to start exporting natural gas countries like China and Japan for a number of years now.
The company said it expects the plan, which is also awaiting final approval from the Federal Energy Regulatory Commission, to create 45,000 jobs nationwide during construction.
Over the past decade, the UK has become a huge gas importer of LNG as its domestic production has decreased. Britain's BG Group and Centrica have reportedly already signed deals with Cheniere to buy LNG from Sabine Pass according to the New Statesman.
Exxon has been expanding its company with acquisitions like the 2010 purchase of XTO Energy in the U.S. and investments in projects such as the A$52 billion ($52 billion) Gorgon LNG facility in Australia.
Gas equaled half of Exxon's global production during the first three months of this year according to Bloomberg News.
Related Articles:
2013 Honda Civic Sedan Leads all Small Cars in Safety Ratings with Top NHTSA and IIHS Crash Scores
FBI Didn't Tell Boston Police About Russian Bombing Suspects Until it Was Too Late (VIDEO)
Dodge and SRT Brands Partner with Universal Pictures on 'Fast & Furious 6' (VIDEO)
Tesla Model S Gets Consumer Reports' Top Score, Ties Highest Rating Ever With a 99 (VIDEO)
Kia Announces Complimentary Scheduled Maintenance Program For The 2014 Cadenza Premium Sedan
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?
