Name of the Project
Gorgon liquefied natural gas (LNG) project.

Location
Barrow Island, Australia.

Client
The project is operated by an Australian subsidiary of Chevron (47.3%), in joint venture (JV) with the Australian subsidiaries of ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), Tokyo Gas (1%) and Chubu Electric Power (0.417%).

Project Description
The Gorgon project currently includes the construction of a three-train, 15.6-million-tonne-a-year LNG plant on Barrow Island, with the capacity to supply 275-million standard cubic feet a day of natural gas to the Western Australian market.

The Gorgon JV participants are progressing environmental approvals for an expansion of the project, which will increase LNG production from 15.6-million to 20-million tonnes a year.

The expansion will involve drilling new production wells and installing new subsea infrastructure in Commonwealth waters, the construction of a new feed gas pipeline system, and the addition of a fourth LNG train and associated infrastructure at the company’s existing gas treatment plant on Barrow Island.

Existing infrastructure constructed as part of the original project will be used to export products generated by the fourth-train expansion proposal.

Jobs to be Created
Not stated.

Value
The Gorgon project is estimated at $54-billion.

The expansion is estimated at $10-billion.

Duration
Plant start-up and first gas from the Gorgon project is planned for mid-2015.

A timeframe for the expansion project has not been confirmed.

Latest Developments
The Gorgon LNG project has started domestic gas supplies to the Western Australian market.

US energy major Chevron has reported that an initial 150 TJ/d of gas is being supplied to foundation customer Synergy and an industry customer under long-term contracts.

Domestic gas from the Gorgon project will be transported to the mainland through a 90 km pipeline, connecting to the existing Dampier to Bunbury natural gas pipeline.

The project is the most significant entry into the Western Australian domestic gas market for almost 30 years. At full capacity and subject to market demand, Gorgon could supply up to 300 TJ/d of gas to the Western Australian market, equivalent to generating enough electricity for 2.5-million households.

Key Contracts and Suppliers
Kellogg Joint Venture (JV) Group, comprising Clough, JGC Corporation and Hatch & Associates (front-end engineering, design and engineering, procurement and construction management contract); Hyundai Heavy Industries (modules and three preassembled units); Howard Porter (trailers); Toll Group (supply base and logistics services); Thiess, Decmil Australia and Kentz JV (construction village); Ertech (marine and onshore work, road improvements, earthworks, water facilities and telecommunications tower installations); Thiess (site preparation for the LNG plant, expansion of logistics infrastructure and temporary construction facilities); DB Schenker (integrated logistics services, including sea-chartering services, the air transport of freight and the consolidation of materials and equipment); Agility Project Logistics (supply base operations and transportation services); Cobham Aviation Services Australia (operation of jets and aircraft); Bristow Helicopters Australia (helicopters); Osmoflo (reverse-osmosis (RO) desalination plants); Sinclair Knight Merz (SKM) (monitoring marine environment); Health Services Australia (medical services); BJ Services (precommissioning services); Aker Solutions (subsea umbilicals and associated equipment); Offshore Oil Engineering Company (fabrication of pipe-rack modules); McDermott International (preassembled racks and units, as well as the fabrication of subsea structures and spools); Air Products (cryogenic heat exchangers); MTU Detroit Diesel (standby power); Monadelphous (water-treatment facility); China Offshore Oil Engineering Corporation; Monadelphous through KT Pipelines Services (transmission pipelines); Neptune Marine Services (dive and vessel support services); AGR Drilling Services, contracted by Van Oord Australia (excavation services on the Jansz Scarp); Noskab (power cables); Fairstar Heavy Transport (heavy transport vessels for modules); AJ Lucas (horizontal directional drilling); Boskalis Australia (dredging work and construction of material offloading facility); Westralian Engineering (maintenance, repair and refurbishment work for Boskalis Australia); and Theiss (miscellaneous civil work).

On Budget and on Time?
The plant’s expected cost was estimated at $37-billion when it was launched in 2009, increased to $52-billion and then to $54-billion in 2014.

Contact Details for Project Information
Chevron Australia, tel +61 8 9216 4000, fax +61 8 9216 4166 or email gorgon.info@chevron.com.