Chevron, partners push ahead with Gorgon natural gas project

14 September 2009 07:02  [Source: ICIS news]

SINGAPORE (ICIS news)--Energy giant Chevron and its partners Shell and ExxonMobil have decided to proceed with their Gorgon natural gas project in Australia, with the first phase of the development estimated to cost A$43bn ($37bn).

The project has secured necessary regulatory approvals and production licenses from the Australian government, Chevron said on Monday.

“With a total resource base of more than 40 trillion cubic feet of gas and an estimated economic life of at least 40 years, Gorgon will be a major contributor to our company's future growth," said Chevron chairman Dave O'Reilly.

The final decision on the project came days after Chevron signed three long-term deals to supply Gorgon LNG to Japan and South Korea.

The project's scope includes a three-train, 15m tonne/year liquefied natural gas (LNG) facility and a domestic gas plant.

"Gorgon adds significant long-term reserves and production for Chevron, bolstering our strong resource replacement and underscoring the importance of Australia to our growing natural gas business," said George Kirkland, executive vice president for global upstream and gas at Chevron.

Chevron subsidiary Chevron Australia Pty Ltd currently owns 50% of the project, while the Australian subsidiaries of Shell and ExxonMobil control 25% each of the project.

($1 = A$1.16)

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By: Pearl Bantillo
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