Chevron Corporation announced the start of production of liquid natural gas (LNG) and condensate at the Gorgon project located on Barrow Island off the northwest coast of Western Australia.
“We congratulate the Gorgon workforce on this achievement,” said Chairman and CEO John Watson.
“This is the result of the collaboration of hundreds of suppliers and contractors and many tens of thousands of people across the world during the project design and construction phases.”
The Gorgon project is one of the world’s largest natural gas projects and the largest single resource development in Australia’s history.
It a joint venture between the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (0.417 percent).
The project – which is supplied from the Gorgon and Jansz-Io gas fields – 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.
Mr Watson said the company’s Australian projects are well located to meet growing demand for energy in the Asia-Pacific region. He said more than 80 percent 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.
“We expect legacy assets such as Gorgon will drive long-term growth and create shareholder value for decades to come,” Mr Watson added.
“The long-term fundamentals for LNG are attractive, particularly in the Asia-Pacific region, and this is a significant milestone for all involved.”