Exxon Mobil's LNG Expansion On Track To Double By 2030: Report

Exxon Mobil Corporation XOM is reportedly ahead of schedule with its plan to double the size of its liquefied natural gas (LNG) portfolio to 40 million tons per annum (mtpa) by 2030.

The company plans to focus on selling its gas rather than trading that of third parties, reported Reuters.

Peter Clarke, Exxon senior vice president for global LNG told Reuters, “Unlike Shell and Total, Exxon plans to mainly trade its own gas.”

Exxon expects to revamp its LNG trading strategy amid growing fuel production and as part of a wider corporate reorganization that began in 2022.

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In 2020, Exxon said it planned to double its LNG portfolio to 40 mtpa by decade-year, from 20 mtpa. As per the report, the oil & gas giant says it is now producing just short of 30 mtpa.

Clarke said, “The big component in LNG is obviously the commercialization of the LNG itself. We want to have the leading LNG portfolio in the world in terms of its financial robustness and financial returns. I would say we’re well on the way to doing it.”

He added, “the projects would help Exxon supply clients in Asia, where the company sees the most potential growth….The market is expanding. And by 2050, 75% of global energy demand will be in Asia Pacific, so we are really focused in that area.”

Read: Exxon Considers Natural Gas Project In Guyana: Report

As per the report, Exxon’s volumes will increase through the Golden Pass LNG project, where it has a 30% stake with QatarEnergies as a partner. That project has an estimated export capacity of around 18 mtpa and will produce its first LNG in 2025.

Investors can gain exposure to Exxon Mobil via SPDR Select Sector Fund – Energy Select Sector XLE and IShares U.S. Energy ETF IYE

Price Action: XOM shares are down 0.45% at $112.97 on the last check Friday.

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