Chevron achieves first LNG production at Gorgon

Gorgon helps Chevron position itself to be one of world’s largest LNG suppliers by 2020

Gorgon
Gorgon Project off the northwest coast of Western Australia. (Photo: Busines Wire)

SAN RAMON, Calif. – Chevron Corporation announced today 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 CEO John Watson.

Chevron says it 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 per cent 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.

“The long-term fundamentals for LNG are attractive, particularly in the Asia-Pacific region, and this is a significant milestone for all involved,” said Watson.

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.

Gorgon
Chairman and CEO John Watson.

“We congratulate the Gorgon workforce on this achievement,” Watson said. “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.”

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 per cent), ExxonMobil (25 per cent), Shell (25 per cent), Osaka Gas (1.25 per cent), Tokyo Gas (1 per cent) and Chubu Electric Power (0.417 per cent).