NEW YORK: Zachry Holdings Inc, the lead contractor of the Golden Pass liquefied natural gas (LNG) export facility, says it received assurances in 2022 and 2023 that it would be paid for its work, despite mounting costs at the massive Texas plant.
Zachry said in a bankruptcy filing made late on June 21 that Golden Pass shareholders Exxon Mobil Corp and QatarEnergy assured Zachry that it would be reimbursed.
Exxon and QatarEnergy recognised that the project could not be completed at the original price or schedule despite public statements, the contractor said.
Golden Pass was originally due to produce its first LNG in early 2025, but is at risk of missing that time line given the dispute with Zachry, which filed for bankruptcy in May and laid off thousands of workers.
Delays could tighten global supplies and risk higher prices for Asia and Europe, while leaving a surplus of domestic natural gas in the ground in the United States.
Exxon didn’t reply to a request for comment outside of business hours. — Bloomberg
