Tuesday, August 01, 2006

Exxon/Qatar announce Sabine LNG Facility

Exxon (NYSE:XOM) issues a press release early this morning announcing procurement details for a LNG facility in Sabine Texas. The press release ambiguously suggests that the 70% majority controlling shareholder will be an undisclosed affiliate of Qatar Petroleum. This is because the LNG will come from Qatar. Exxon and ConocoPhillips (NYSE:COP) will hold the remaining crumbs. Strangely ConocoPhillips did not issue an announcement at the same time. Given the recent controversy surrounding foreign (Arab) control of American Harbors and Seaports the Qatar involvement is surprising. Why can foreign interests control Sabine and not other ports?