Chevron Pushes Start-up Date for First Gas from Gorgon to Mid-2015; LNG Project Almost 80% Complete

  • Rate this Story
  • 0
  • 0

By Vittorio Hernandez | March 13, 2014 9:58 AM EST

Reuters
Chevron Corporation gasoline tank trucks deliver gas to a Chevron service station in Redondo Beach, California August 10, 2005.

YouTube/Chevron

Oil giant Chevron, in an update on Wednesday, disclosed that with the completion of the offshore pipelaying at its liquefied natural gas (LNG) project in Western Australia, the country's largest gas project, Gorgon, is almost 80 per cent complete.

About two-thirds of its LNG output has been committed to buyers, with 65 per cent of the natural gas committed under long-term contracts.

But start-up date for the first flow of gas from Gorgon was moved back to mid-2015 from the first quarter of the same year.

While the delay is just by about one quarter, the cost of the venture has soared past the original $37 billion when it was approved in 2009.

Beside Gorgon is Chevron's Wheatstone LNG project, costing $A29 billion, which is 30 per cent complete. About 85 per cent of its LNG output is committed under long-term contracts.

YouTube/Chevron

Gorgon has provided employment for about 6,000 people deployed at Barrow Island, while 3,800 workers are assigned at Wheatstone.

When at full capacity, the two LNG facilities would produce 400,000 barrels of LNG daily.

To contact the editor, e-mail:

(Photo: Reuters / Fred Prouser)
Chevron Corporation gasoline tank trucks deliver gas to a Chevron service station in Redondo Beach, California August 10, 2005.
  • Rate this Story
  • 0
  • 0
This article is copyrighted by IBTimes.com.au, the business news leader

Join the Conversation

IBTimes TV
E-Newsletters

We value your privacy. Your email address will not be shared.