Golden Pass: Pause to celebrate, then on to next phase
Published 10:02 am Friday, February 8, 2019
By Ken Stickney
SABINE PASS — It’s been a 15-year journey for Golden Pass LNG to work toward exporting its product. It will take a few years more.
But some 200 area business, political and community leaders pressed into an event tent on the grounds Thursday to celebrate this week’s decision to move forward with construction on what will be a $10 billion, liquefied natural gas facility. Golden Pass is expected to be operational to export in 2024.
“I don’t think the significance can be overplayed,” said Jefferson County Judge Jeff Branick, who was in Washington, D.C., on Tuesday for the formal announcement. He said there are “no better corporate citizens” than Golden Pass, who have contributed generously to the community since initially coming here in 2003.
“It’s been an incredible journey,” said Sean Ryan, Golden Pass president. “It’s been an historic time.”
Here’s some history: When the plant was first announced as an LNG import facility in 2003, Texas Gov. Rick Perry traveled to Sabine Pass to celebrate the occasion. This week, Energy Secretary Rick Perry shared the stage with Golden Pass at its announcement in Washington, and told company leaders he’d like to come back to Sabine Pass for the next groundbreaking. But there are steps between now and then.
For one, the new facility must be designed in Japan. That will take two years. Meanwhile, the ground at Golden Pass must be stabilized and soil brought in — much of it by water — for new construction, which will involve thousands of steel pilings. About 3 million yards of material will come into the plant area. Three years of construction will follow two years of design and prep work.
“I appreciate the confidence Golden Pass has had in Port Arthur, Texas in bringing investment to this community,” said Bill McCoy, president and CEO of the Greater Port Arthur Chamber of Commerce.
Former chamber Chairman Jeff Hayes said Golden Pass has been a great corporate citizen even before their decision to build. “The economy changed when it came to LNG,” he said. “Thank God they changed with it.”
“Golden Pass is a great partner for the Sabine Neches Navigation District,” said Paul Beard, board president. “I expect them to remain so for years to come.”
Mick Cowart, manager of the Port of Sabine Pass, said they are looking at ways to partner with and support Golden Pass, perhaps through new infrastructure.
Golden Pass — Quatar Petroleum holds about 70 percent ownership — will procure the gas, transport and store it and do the liquefaction processes and terminal services. Ocean LNG will ship and market the product. ExxonMobil holds about 30 percent of the investment on both ends.
The project will use existing tanks, berths and infrastructure, Golden Pass says. The export capacity is 15.6 million tons of LNG per year, the company said in its printed material. The company will become the “second-largest gas buyer” in the U.S.
The $10 billion investment will generate $31 billion in U.S. economic gains, create 9,000 construction jobs and 45,000 director and indirect jobs. Once the plant is operational, it will add 200 jobs to the current 70 jobs at that plant and 3,800 direct and indirect jobs for the life of the facility.
Branick said the company has been especially aggressive in creating opportunities for local contractors and for local workers, essentially extending opportunities to those who live and work here.
The company espouses also environmental stewardship, he said, and donated some $1.5 million to help the community after Hurricane and Tropical Storm Harvey.
Even while it embraced its community, Golden Pass made itself clear: It intends to become a world-class facility that will support the idea of energy dominance.
Robert Bilnoski, vice president of human resources and public affairs, said the decision to move forward was seven years in the making and involved countless steps for permits and approval.
“You people — our employees — made it a reality,” he said, before crediting various people and entities in Port Arthur and Sabine Pass for helping the decision along.
David Williams, senior project manager, said some five miles of protective levees safeguard the plant from storms, of which this company has experienced many — Hurricanes Rita, Ike and Harvey, among them — since it planted its flag here.
Bilnoski said Golden Pass’ management was meeting with its contractors Thursday.
He said prospective employees for the new facility should access the company website.