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Chevron to move ahead with second phase of $54bn Gorgon gas project

EBR Staff Writer Published 16 April 2018

Chevron has decided to proceed with the second stage of the $54bn Gorgon gas project in Western Australia.

The Gorgon Project, which has a total production capacity of about 2.6 billion cubic feet of natural gas and 20,000 barrels of condensate per day, is located about 60km off the northwest coast of Western Australia.

The Chevron-operated Gorgon project, which was commissioned in March 2016 by Chevron and its joint venture partners, had undergone numerous several unplanned shutdowns in early stages, reported Reuters.

Scheduled to commence next year, the second phase of the project involves drilling 11 new wells in the Gorgon and Jansz-Io fields.

The two fields are located within the Greater Gorgon area in the Barrow sub-basin of the Carnarvon Basin.

Work under the second phase also includes building offshore pipelines and subsea structures to deliver the gas to the nearby LNG plant on Barrow Island.

The additional subsea facilities are expected to maintain the gas supply for the life of the project over the next 30 to 40 years.

Premier Mark McGowan said: "I congratulate Chevron Australia on this next development phase at the Gorgon project, which will undoubtedly provide hundreds of new jobs for Western Australians.  

"This is a major State-building project that will deliver a significant boost to our economy. This investment is another sign that WA is getting back on track - the economy is improving, confidence is up and jobs are being created.

"The Gorgon project off the North-West coast is one of the biggest resources projects in Australia's history, delivering jobs to thousands of WA workers and big benefits to the wider economy.”

The Gorgon Project is jointly owned by the Australian subsidiaries of Chevron with 47.3% stake, ExxonMobil with 25% interest, Shell with 25% interest, Osaka Gas with 1.25% stake, Tokyo Gas with 1% stake and JERA with 0.417% interest.

Image: The first LNG cargo from the Gorgon Project being delivered to customer Chubu Electric. Photo: courtesy of Chevron Corporation.