US Chevron Corporation commenced liquefied natural gas (LNG) and condensate production at the $54b Gorgon Project on Barrow Island, located off the northwest coast of Western Australia. Its first cargo is scheduled to be shipped in mid March, the company said according to RigZone.
Through projects like Gorgon, which are well located to meet growing energy demand in the Asia-Pacific region, Chevron is trying to position itself as a major LNG supplier by 2020.
The Gorgon asset was established as a joint venture with Shell and ExxonMobil, each holding 25%, and Japanese firms Osaka Gas (1.25%), Tokyo Gas (1.0 %), and Chubu Electric Power (0.417%). Chevron owns 47.3% of the venture, according to AFP.
Construction of the Gorgon Project commenced in 2009, when the development cost was estimated at $37b. Major facilities include an LNG plant on Barrow Island with a capacity of 15.6m tons per annum, a carbon dioxide injection project, and a domestic gas plant with a capacity to supply 300 terajoules of gas per day to Western Australia.
More than 80% of Chevron’s Australian subsidiaries’ LNG equity from the Gorgon and Wheatstone projects is covered by sales and purchase agreements and heads of agreements with regional customers.