Chevron brings Gorgon into production

Offshore staff

SAN RAMON, California – Chevron Corp. has started producing LNG and condensate at the Gorgon Project on Barrow Island offshore Western Australia. The first LNG cargo is expected to be shipped next week.

The Gorgon Project is supplied from the Gorgon and Jansz-Io gas fields, located within the Greater Gorgon area, between 80 mi (130 km) and 136 mi (220 km) off the northwest coast of Western Australia. It includes a 15.6 million ton per annum 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.

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 said it is positioned to become a major LNG supplier by 2020. In particular, the company’s Australian projects are well located to meet growing demand for energy in the Asia/Pacific region and more than 80% of Chevron’s Australian subsidiaries’ equity LNG from the Gorgon and Wheatstone projects is covered by sales and purchase agreements and heads of agreements with customers in the region.

The Chevron-operated Gorgon Project is a joint venture between the Australian subsidiaries of Chevron (47.3%), ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), Tokyo Gas, (1%) and Chubu Electric Power (0.417%).


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