Chevron green lights $37bn Gorgon LNG project

“With a total resource base of more than 40 trillion cubic feet of gas and an estimated economic life of at least 40 years, Gorgon will be a major contributor to our company’s future growth,” Chevron chairman Dave O’Reilly said.

Development proposals for the project were approved today by the Western Australian State Premier, Colin Barnett and production licenses were granted by the Australian Minister for Resources and Energy Martin Ferguson.

“Gorgon adds significant long-term reserves and production for Chevron, bolstering our strong resource replacement and underscoring the importance of Australia to our growing natural gas business,” George Kirkland, executive vice president, Global Upstream and Gas, Chevron Corporation said.

The Gorgon Project, is operated by Chevron who own 50% of the joint venture with ExxonMobil and Shell each owning 25%.

The current estimated costs of $37 billion covers the first phase of development and the first gas is planned for 2014.

The Greater Gorgon Area’s projected natural gas resources are equivalent to 6.7 billion barrels of oil. The project’s scope includes a three-train, 15 million-metric-ton-per-year liquefied natural gas (LNG) facility and a domestic gas plant.

The project underwent an environmental assessment that culminated with some of the most stringent conditions imposed on a major project anywhere in the world.

Gorgon is also expected to have the world’s largest carbon dioxide injection system and be a global leader in underground carbon dioxide injection technology.