Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Chevron greenlights Gorgon LNG expansion off west Australian coast

Published 14/04/2018, 12:54 pm
Chevron greenlights Gorgon LNG expansion off west Australian coast
CVX
-
SHEL
-
NG
-
9531
-
9532
-

SYDNEY, April 14 (Reuters) - Chevron Corp (NYSE:CVX) CVX.N will proceed with the second stage of its giant Gorgon liquefied natural gas (LNG) export plant off the northwest coast of Western Australia, the company said on Saturday.

Chevron and its joint venture partners plan to sink 11 new wells in the Gorgon and Jansz-Io fields and build offshore pipelines and subsea structures to pipe the gas to the nearby 15.6 million tonne a year LNG plant on Barrow Island.

The $54 billion Gorgon project came on stream in March 2016 but suffered numerous unplanned shutdowns in its early stages. declined to put a cost on stage two of the project, but a spokesman said the development would fit within its planned annual investment of $18 billion to $20 billion through 2020.

Drilling should start next year and the full expansion could take about four years, a source with knowledge of the plans said.

Seven new wells will be drilled thousands of metres below sea level in the Gorgon field while four will be sunk in the Jansz-Io field, about 70 km (44 miles) further out to sea.

Gorgon Stage Two is part of the original Gorgon development plan which includes the expansion of the subsea gas network required to maintain long-term natural gas supply to Barrow Island.

"Through ongoing collaboration, we need to invest in both the infrastructure and the local skills and capability required to maintain our long-term energy position and contribute to the jobs of the future," Chevron Australia managing director Nigel Hearne said in a statement.

"Benefits are expected to flow through to Australian industry, arising from local project management, drilling and completion activities and subsea infrastructure installation."

Chevron is the Gorgon project operator and holds a controlling 47.3 percent, while ExxonMobil XOM.N and Shell RDSa.L each have a 25 percent stake. The remaining stakes are held by Osaka Gas 9532.T , Tokyo Gas 9531.T and JERA.

Chevron also leads the development of the Wheatstone natural gas project, manages a one-sixth interest in the North West Shelf Venture and operates Australia's largest onshore oilfield on Barrow Island.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.