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Chevron readies first LNG cargo from Australian mega project

Published 15/01/2016, 05:54 pm
© Reuters.  Chevron readies first LNG cargo from Australian mega project
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By Jacob Gronholt-Pedersen

SINGAPORE, Jan 15 (Reuters) - Chevron Corp (N:CVX) CVX.N said on Friday it is on track to export the first cargo of liquefied natural gas (LNG) from its Australian Gorgon project - the world's most expensive - early this year.

Natural gas supplies from the $54 billion project will come to market just as a raft of other Australian projects come on line and the United States is due to export its first cargo from abundant shale gas supplies. for the fuel in Asia LNG-AS have plummeted as slowing economic growth has dented demand growth.

Chevron said that in preparation for the project's start-up it had begun to cool down the LNG storage and loading facilities at the Gorgon plant on Barrow Island off western Australia.

In order to cool down the equipment, which is necessary to liquefy the natural gas for shipment onboard tankers, a cargo of LNG was shipped to the plant from Indonesia on Chevron's Asia Excellence gas carrier.

The vessel has been moored at Barrow Island for the past two weeks, Reuters shipping data showed.

Commercial deliveries of LNG from the 15.6 million tonne per annum Gorgon project will go mainly to customers in Asia and are due to start later this year.

The commissioning of the plant is good news for Chevron following delays and billions of dollars in cost overruns.

The company didn't say when the first cargo would be exported, but chief executive John Watson said last year it would be shipped in the first quarter of 2016.

Chevron operates the project and holds a 47.3 percent stake. Exxon Mobil Corp (N:XOM) XOM.N and Royal Dutch Shell PLC RDSa.L holds 25 percent each, while Japan's Osaka Gas Co Ltd 9532.T , Tokyo Gas Co Ltd 9531.T and Chubu Electric Power Co Inc 9501.T hold the remaining shares.

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