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Chevron kick-starts production from $54billion Gorgon project

Chevron's Gorgon gas project
Chevron's Gorgon gas project

Chevron confirmed it had successfully started production from its $54billion liquefied natural gas (LNG) and condensate Gorgon Project.

The scheme, which is located on Barrow Island off the northwest coast of Western Australia, is the country’s largest resource development.

Chief executive John Watson said: “We expect legacy assets such as Gorgon will drive long-term growth and create shareholder value for decades to come.

“The long-term fundamentals for LNG are attractive, particularly in the Asia-Pacific region, and this is a significant milestone for all involved.

“We congratulate the Gorgon workforce on this achievement.

“This is the result of the collaboration of hundreds of suppliers and contractors and many tens of thousands of people across the world during the project design and construction phases.”

The Gorgon Project is supplied from the Gorgon and Jansz-Io gas fields, located within the Greater Gorgon area, between 80 miles (130 km) and 136 miles (220 km) off the northwest coast of Western Australia. It includes a 15.6 MTPA LNG plant on Barrow Island, a carbon dioxide injection project and a domestic gas plant with the capacity to supply 300 terajoules of gas per day to Western Australia.

Chevron acts as operator with a 47% stake. Shell, ExxonMobil, Osaka Gas, Tokyo Gas and Chubu Electric Power share the remaining stake.

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