▪️Zachry Industry, contractor of gas liquefaction plant for ExxonMobil and Qatar Petroleum, files for bankruptcy
Zachry Industrial, a construction and engineering firm working to build a gas liquefaction plant for Exxon Mobil and Qatar Petroleum, laid off thousands of workers in East Texas after filing for bankruptcy last month.
Zachry notified the Texas Workforce Commission of its plan to lay off 4,430 workers in East Texas, according to a list of WARN notices updated this week.
The San Antonio-based company said in a statement that it was “forced to take decisive action to protect our business” after it absorbed “staggering costs” at Golden Pass related to supply chain challenges that have spiraled since the start of the pandemic.
The company blamed the layoffs on Golden Pass LNG, which it said refused to pay for services. “Golden Pass LNG’s refusal to engage productively or make good on their numerous empty promises of financial support forced us to lay off employees and seek protection and resolution through a Chapter 11 process,” the company said in a statement.
Golden Pass was not immediately available for comment. Exxon owns 30% of the project. Qatar owns the remaining 70%.
The project had made headway in recent years as demand for U.S. gas increased after Russia’s invasion of Ukraine. If completed, the project would make and export 18.1 million metric tons per year of super-cooled natural gas.
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Zachry said it had more than 6,000 workers at the Golden Pass site in Sabine Pass before the layoffs. Now, only “a small group” of workers remains.
“A small group of our employees remain onsite to help ensure a safe and orderly transition,” it said, “and we will try to place as many of the other employees as possible at other projects in the region.”
Exxon said in a statement that it was committed to finishing the project, which it said was more than 75% complete.
“We recognize the potential for impact on the timeline for the Golden Pass LNG project,” Exxon said. “We, along with the other stakeholders, are considering all available options to implement a smooth transition and minimize any impacts.”
Credit: Houston Chronicle