The Gorgon LNG Project. Image courtesy of Chevron.

Chevron said Tuesday it has started producing liquefied natural gas (LNG) and condensate at the Gorgon Project on Barrow Island off the northwest coast of Western Australia.

The first LNG cargo is expected to be shipped next week, Chevron said.

The Gorgon Project is supplied from the Gorgon and Jansz-Io gas fields, located within the Greater Gorgon area, between 80 and 136 miles off the northwest coast of Western Australia.

The Gorgon field is one of the largest gas fields ever discovered in Australia.

The project 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.

“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,” Chevron chairman and CEO John Watson said.

Chevron said it’s positioned to become a “major” LNG supplier by 2020.

The company said its Australian projects are “well located to meet growing demand for energy” in the Asia-Pacific region.

More than 80 percent of Chevron’s Australian subsidiaries’ equity LNG from the Gorgon and Wheatstone projects is covered by sales and purchase agreements and heads of agreements with customers in the region, the company added.

“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,” Watson added.

The Chevron-operated Gorgon Project is a joint venture between the Australian subsidiaries of Chevron with a 47.3 percent stake, ExxonMobil with a 25 percent stake, Shell with a 25 percent stake, Osaka Gas with a 1.25 percent stake, Tokyo Gas with a 1 percent stake and Chubu Electric Power with a 0.417 percent stake.


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