Chevron to Proceed with Stage Two of WA Gorgon Project

US major Chevron and its joint venture participants have decided to proceed with future offshore development of the Western Australian Gorgon project, which will underpin long-term supply for the LNG export facility, the company said April 14.

Chevron Australia managing director Nigel Hearne said Gorgon Stage Two, which is part of the original development plan, includes the expansion of the subsea gas gathering network required to maintain long-term gas supply to the 15.6mn metric tons/year LNG plant and domestic gas plant on Barrow Island.

“Benefits are expected to flow through to Australian industry, arising from local project management, drilling and completion activities and subsea infrastructure installation,” Hearne said.

The planned future development phase involves new wells in the Gorgon and Jansz-lo fields, and accompanying offshore production pipelines and subsea structures. The development fits within Chevron’s previously announced annual investment range of $18-20bn through 2020, the company said.

The Chevron-operated Gorgon Project is a joint venture between the Australian subsidiaries of Chevron (47.4%), ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), Tokyo Gas (1%) and Jera (0.417%).