Chevron: The Gorgon Project Achieves First LNG Production
SAN RAMON, Calif., Mar. 7, 2016 – Chevron Corporation (NYSE: CVX) today announced it has started producing liquefied natural gas (LNG) and condensate at the Gorgon Project on Barrow Island off the northwest coast of Western Australia. The first LNG cargo is expected to be shipped next week.
“We expect legacy assets such as Gorgon will drive long-term growth and create shareholder value for decades to come,” said Chairman and CEO John Watson. “The long-term fundamentals for LNG are attractive, particularly in the Asia-Pacific region, and this is a significant milestone for all involved.”
Chevron is positioned to become a major LNG supplier by 2020. In particular, Chevron’s Australian projects are well located to meet growing demand for energy in the Asia-Pacific region and 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 congratulate the Gorgon workforce on this achievement,” Watson continued. “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 supplied from the Gorgon and Jansz-Io gas fields, located within the Greater Gorgon area, between 80 miles (130 km) and 136 miles (220 km) off the northwest coast of Western Australia. It 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.
The Chevron-operated Gorgon Project is 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).
Chevron Corporation is one of the world’s leading integrated energy companies. Through its subsidiaries that conduct business worldwide, the company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemicals and additives; generates power and produces geothermal energy; and develops and deploys technologies that enhance business value in every aspect of the company’s operations. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
The Gorgon Project is one of the world's largest natural gas projects. With a total production capacity of about 2.6 billion cubic feet of natural gas and 20,000 barrels of condensate per day, the Gorgon Project will be an important pillar of the Australian economy for decades to come. Unlocking this energy puts Australia in a prime position to meet future demand and provide aclean–burning fuel, both at home and overseas.
The Gorgon Project is being constructed on Barrow Island, located about 37 miles (60 km) off the northwest coast of Western Australia.
Gorgon is a story of energy and the environment as well as technology and expertise. Based on Barrow Island, the Gorgon Project includes a domestic natural gas plant and a liquefied natural gas (LNG) facility with three processing units designed to produce 15.6 million metric tons of LNG per year.
"Together, Gorgon and Wheatstone will position Chevron as Australia's largest LNG producer* and Australia as one of the world's largest LNG exporters."
Managing Director, Chevron Australia
*According to Wood Mackenzie data, from 2019 Chevron will be Australia's largest LNG producer, helping transform Australia into one of the world's biggest producers.