Golden Pass LNG Ships First Cargo from Sabine Pass, Becoming 10th US Export Terminal as QatarEnergy and ExxonMobil 18 MMtpa Build-Out Begins

Golden Pass LNG loaded its first export cargo onboard QatarEnergy's 174,000 cubic meter Al-Qaiyyah carrier on Tuesday from the Sabine Pass terminal in Texas, marking the start of commercial operations for the 10th US LNG export facility and the first major US liquefaction startup of 2026. The departure caps a decade of permitting, $10 billion in construction, and a roughly two-year contractor-related delay that pushed the original 2024 commissioning into the current cycle.

The terminal is a joint venture between QatarEnergy, which holds 70 percent, and ExxonMobil, which holds 30 percent. Train 1 is now operational. Trains 2 and 3 remain in construction and commissioning, with the full 18.1 million tonnes per annum (MMtpa) target expected once all three trains ramp.

What Tuesday's Cargo Means for US LNG Capacity

The first-cargo milestone pushes nameplate US LNG export capacity past 100 MMtpa for the first time, cementing the country's position as the world's largest LNG exporter ahead of Qatar and Australia. US shipments recently touched a near-record 18.9 billion cubic feet per day as Cheniere brought its Corpus Christi Train 5 online earlier this month, and Golden Pass adds incremental supply at exactly the moment global buyers are scrambling to replace disrupted Qatari volumes.

Train 1 alone can produce roughly 6 MMtpa, equivalent to about 870 million cubic feet per day of liquefied volume. At full three-train output, Golden Pass will lift around 2.6 Bcf/d of feedgas from the US pipeline grid, drawing primarily on Haynesville and Permian supplies routed through the existing Golden Pass Pipeline.

Executive Comments and Strategic Framing

Alex Savva, Golden Pass President and CEO, called Tuesday's cargo "a defining moment for Golden Pass, our workforce, the community, and the nation." Chief Commercial Officer Jeff Hammad said the export commencement "marks the fulfillment of the vision our shareholders set in motion," referring to QatarEnergy and ExxonMobil's 2019 final investment decision.

For QatarEnergy, the Sabine Pass cargoes provide a US-based supply leg that is geographically immune to Hormuz disruption, a strategic complement to the company's flagship North Field Expansion in Qatar that has run at reduced rates since the spring conflict. For ExxonMobil, Golden Pass adds a tolling-style cash flow stream that is largely insulated from upstream price volatility.

Pricing Context and Margins

Brent settled near $103 per barrel and West Texas Intermediate above $94 on Wednesday, both supported by ongoing Strait of Hormuz disruptions. The Henry Hub-to-TTF spread has widened to its highest level since the 2022 European energy crisis, putting US LNG netbacks deep in the money. Asian JKM prices remain elevated as buyers compete for limited Atlantic Basin volumes.

Henry Hub prompt-month gas traded near $3.60 per MMBtu while European TTF held around $19 per MMBtu, implying gross liquefaction and shipping margins north of $11 per MMBtu before fees. Those economics make every additional Golden Pass cargo materially accretive even after construction cost overruns.

What Comes Next at Sabine Pass

Three operational milestones will determine the ramp pace. First, sustained Train 1 production at 90 percent of nameplate, expected by the third quarter. Second, Train 2 first production, targeted for late 2026. Third, Train 3 first production, currently slated for 2027. Each train transition adds roughly 6 MMtpa of capacity and roughly 870 million cubic feet per day of feedgas demand.

The broader US LNG build-out continues to accelerate. Plaquemines LNG, Corpus Christi Stage 3, Rio Grande LNG, and Port Arthur LNG remain in various stages of commissioning or construction, with combined incremental capacity of roughly 60 MMtpa scheduled before 2028. Combined with Golden Pass, the wave of new supply will reshape global LNG balances even as legacy buyers in Asia and Europe sign longer-dated offtake contracts to lock in volumes ahead of expected post-2027 oversupply.

For US gas producers, the Golden Pass startup tightens an already firm domestic balance. Permian operators in particular benefit from any incremental Gulf Coast feedgas demand that absorbs growing associated gas output, easing the takeaway pressure that drove Waha basis blowouts through 2025 and into early 2026, a dynamic that the 2.5 Bcf/d Blackcomb Pipeline is being built to address.