PERTH (miningweekly.com) – The $54-billion project, offshore Western Australia, has produced its first liquefied natural gas (LNG), US energy major Chevron reported on Tuesday.
The first LNG cargo was expected to ship next week.
“We expect legacy assets such as Gorgon will drive long-term growth and create shareholder value for decades to come,” said Chevron chairperson and CEO John Watson.
“The long-term fundamentals for LNG are attractive, particularly in the Asia-Pacific region, and this is a significant milestone for all involved.”
Watson pointed out that Chevron was positioned to become a major LNG supplier by 2020, with its Australian projects well located to meet growing demand for energy in the Asia-Pacific region and more than 80% of Chevron’s Australian subsidiaries’ equity LNG from the Gorgon and Wheatstone projects was covered by sales and purchase agreements and heads of agreements with customers in the region.
The Gorgon project 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 Australian Petroleum Production and Exploration Association (Appea) CEO Malcolm Roberts on Tuesday congratulated Chevron and its joint venture partners on the first LNG from Gorgon, saying the project was the latest in a wave of unprecedented LNG investment that would deliver enduring benefits for all Australians.
“Gorgon is the largest single resource project ever developed in Australia and one of the world’s largest natural gas projects,” Roberts said.
“The economic benefits to Australia during its construction have been enormous – more than 10 000 direct jobs and more than A$34-billion spent on local goods and services.
“But the long-term benefits will be even greater. Gorgon is expected to generate gross domestic product growth of more than $440 billion over the next two decades of operations and additional federal revenue of around A$69-billion.
“Every shipment of gas that sails from Barrow Island means more wealth for Australia and more cleaner-burning energy for Asia.”
Roberts said Australia was reaping the benefits of A$200-billion worth of new investment that would see LNG exports surge from 30-million tonnes last year to more than 85-million tonnes by 2020.