Qatar Petroleum and Exxon Mobil Corp are expected to announce plans next week to proceed with a $10 billion project that will expand a liquefied natural gas (LNG) export facility in Texas, three people familiar with the transaction said. ConocoPhillips, the third partner in the existing import terminal, plans to sell its 12.4 percent stake and does not plan to participate in the expansion, the people said.

LNG demand is soaring. Worldwide consumption of the fuel is expected to more than double to 550 million tonnes a year (mtpa) by 2030, triggering a race among oil and gas companies eager to dominate the market. Golden Pass LNG began as a receiving and regasification facility in Sabine Pass, Texas able to handle up to 2 billion cubic feet of natural gas imports per day.

However, as US gas production has soared to new records, bolstered by shale production, the demand for export capacity has increased. The potential $10 billion expansion, first announced in 2014, would focus on this new market dynamic. It is part of Qatar Petroleum's plans to invest some $20 billion in the United States as the company seeks to increase its overseas oil and gas footprint.

Copyright Reuters, 2019