Gorgon LNG project begins production
SAN RAMON, March 8, 2016 – Chevron and its partners Shell and ExxonMobil will ship their first LNG cargo from Australia’s Gorgon LNG development next week, having begun production on Tuesday.
The largest-such venture in Australian history, the LNG development has been marred by cost overshoots. Originally pegged at some USD 37 billion in 2009, the project is now valued USD 54 billion.
Located on Barrow Island, Gorgon’s three LNG trains will see Australia possibly overtake Qatar as the biggest LNG exporter in the world in 2018, according to projections by the Australian Petroleum Production & Exploration Association. By 2020, the country should be able to export 85 million tonnes of LNG per year, the industry body said.
The Gorgon LNG development is operated by the Australian subsidiaries of Chevron, ExxonMobil and Shell, holding stakes of 47.3%, 25% and 25%, respectively. The other partners are Osaka Gas, Tokyo Gas and Chubu Electric Power.