ExxonMobil-QatarEnergy JV Helps Italy Offset LNG Supply Gap

Exxon Mobil Corporation XOM and QatarEnergy’s joint venture, the Golden Pass LNG facility in Texas, will begin supplying liquefied natural gas (LNG) to Italy from June, per a Reuters report. Golden Pass LNG recently began production and is slated to export its first cargo in the second quarter of 2026. Per the Reuters report, the U.S. LNG shipment will allow Italy to offset a costly supply gap created by disruptions in LNG supply from Qatar due to the United States-Iran war in the Middle East.

Previously, QatarEnergy had mentioned that Iranian strikes damaged key energy infrastructure in Qatar, wiping out nearly 17% of its LNG export capacity. Following this, QatarEnergy had declared force majeure on many of its long-term LNG agreements, including those with Italy, Belgium and China. Qatar is one of the largest exporters of LNG globally, and the decision to shut in its production facilities may pose major supply shortages in Europe and Asia.

While Italy already imports LNG from the United States, this will be the first cargo supplied from the Golden Pass LNG export facility in Texas, which will be received at the Adriatic LNG terminal in Italy. Italy’s Edison has a long-term agreement with QatarEnergy for the purchase of 6.4 billion ‌cubic meters of LNG per annum. This is equivalent to nearly 10% of the country’s annual consumption. The closure of LNG facilities in Qatar has impacted energy supply to many of its long-term customers, including Edison. Italy is diversifying its supply sources and seeking U.S. LNG supplies to mitigate the supply gap created by these disruptions.

QatarEnergy holds a 70% interest in the Golden Pass LNG joint venture, while XOM holds the remaining 30%. Upon becoming fully operational, the LNG facility in Texas is expected to have a total LNG capacity of 18 million metric tons per annum.

XOM’s Zacks Rank and Key Picks

XOM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Equinor ASA EQNR, Archrock Inc. AROC and Subsea7 S.A. SUBCY. While Equinor sports a Zacks Rank #1 (Strong Buy), Archrock and Subsea7 carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Equinor ASA is one of the leading integrated energy companies globally and a major supplier of natural gas in Europe. The recent conflict between the United States and Iran has resulted in a spike in gas prices and disrupted LNG supply, following damage to critical infrastructure in Qatar, tightening global LNG supply. This is expected to boost demand for Equinor’s gas exports to Europe, positioning the company to benefit from heightened prices. The company’s expansion in the renewable energy space positions it for long-term growth as more countries transition toward cleaner energy solutions to meet their climate goals.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.

Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.

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