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Chevron begins production from $54bn Gorgon LNG project in Australia

EBR Staff Writer Published 08 March 2016

Chevron and its partners have commenced production from the $54bn Gorgon liquefied natural gas (LNG) project on Barrow Island off the northwest coast of Western Australia.

LNG project

The partners are planning to ship first LNG cargo next week.

The Gorgon gas project involves development of the Gorgon and Jansz-Io gas fields located within the Greater Gorgon area in the Barrow sub-basin of the Carnarvon Basin.

The Greater Gorgon area is estimated to have proven hydrocarbon reserves of 13.8 trillion cubic feet.

It also includes a 15.6 MTPA LNG plant on Barrow Island, a carbon dioxide injection project and a domestic gas plant with the capacity to supply 300 terajoules of gas per day to Western Australia.

Chevron Chairman and CEO John Watson said: "We expect legacy assets such as Gorgon will drive long-term growth and create shareholder value for decades to come.

"The long-term fundamentals for LNG are attractive, particularly in the Asia-Pacific region, and this is a significant milestone for all involved."

Chevron has 47.3% interest in the Gorgon LNG project while Shell and ExxonMobil own 25% interest each. Additional partners include Osaka Gas with 1.25% stake, Tokyo Gas with 1% and Chubu Electric Power 0.417%.

Earlier this year, Chevron signed an agreement to supply LNG to China-based ENN LNG Trading (ENN) for ten years from the Gorgon project.

ENN is expected to receive up to 0.5 million metric tons per annum (MTPA) of LNG beginning in 2018 or the first half of 2019.

Previously, Chevron also agreed to supply one MTPA of LNG to China Huadian Green Energy for over ten years starting in 2020 from the Gorgon and Wheatstone LNG projects.


Image: Gorgon LNG project is located on Barrow Island off the northwest coast of Western Australia. Photo: courtesy of Chevron Corporation.