First LNG ship leaves Bar­row

Pilbara News - - News - Peter Klinger

■ Af­ter al­most seven years of con­struc­tion and $71 bil­lion spent, Chevron this week waved off the first ship­ment of liq­ue­fied nat­u­ral gas from Bar­row Is­land, des­tined for Ja­panese cus­tomers.

It sig­nals the fi­nal proof of con­cept for Aus­tralia’s big­gest re­sources pro­ject, and the big­gest de­vel­op­ment Chevron, a global oil and gas ti­tan, has un­der­taken.

Gor­gon’s first of three LNG pro­cess­ing lines started al­most two weeks ago, and load­ing of the Asia Ex­cel­lence car­rier be­gan at the week­end ahead of the ship’s sail­ing this week.

The first cargo is be­ing sent to Ja­panese util­ity Chubu Elec­tric Power, one of Gor­gon’s foun­da­tion cus­tomers.

Chevron Aus­tralia man­ag­ing di­rec­tor Roy Krzy­wosin­ski said the maiden ship­ment “sig­ni­fies the ded­i­ca­tion and ef­forts of tens of thou­sands of peo­ple on Bar­row Is­land, through­out Aus­tralia and around the world”.

“Safely and re­li­ably de­liv­er­ing a pro­ject the scale of Gor­gon, while pro­tect­ing our peo­ple and the en­vi­ron­ment, is a clear demon­stra­tion of team­work and a credit to the col­lec­tive ef­forts of our cus­tomers, govern­ment and part­ners,” he said.

“Gor­gon, along with Wheat­stone, rep­re­sents a new chap­ter in Aus­tralia’s re­sources his­tory.

“Both projects will con­tinue to de­liver sig­nif­i­cant long-term eco­nomic ben­e­fits and en­ergy se­cu­rity for Aus­tralia for decades to come.”

Gor­gon and Wheat­stone LNG could sup­ply about 25 per cent of Ja­pan’s an­nual gas de­mand.

The Gor­gon pro­ject is sup­plied from the Gor­gon and Jansz-Io gas fields, lo­cated in the Greater Gor­gon area, be­tween 130km and 220km off WA’s north-west coast.

At full ca­pac­ity, Gor­gon will be able to pro­duce 15.6 mil­lion tonnes of LNG a year.

Premier Colin Bar­nett said the State Govern­ment and joint ven­ture part­ners had man­aged to en­sure Bar­row Is­land’s en­vi­ron­men­tal in­tegrity was main­tained through strict quar­an­tine con­di­tions.

“The pro­ject is the largest sin­gle re­sources pro­ject in Aus­tralian his­tory, and is also one of the largest nat­u­ral gas projects in the world,” he said.

“To date, more than $34 bil­lion has been in­vested within the State and Aus­tralia, and 455 con­tracts have been awarded to WA com­pa­nies for goods and ser­vices.

“As the pro­ject moves into pro­duc­tion, its long­stand­ing ben­e­fits in­clude op­er­a­tional and main­te­nance jobs, the pro­vi­sion of do­mes­tic gas and the pay­ment of State taxes.”

Fed­eral Op­po­si­tion re­sources spokesman Gary Gray, who vis­ited Bar­row Is­land last week with Fed­eral Re­sources Min­is­ter Josh Fry­den­berg, said “first ex­port gas is a ter­rific achieve­ment”.

“I con­grat­u­late the whole Gor­gon team — work­ers, man­age­ment and reg­u­la­tors — this is an achieve­ment of global sig­nif­i­cance,” he said.

WA Cham­ber of Min­er­als and En­ergy also wel­comed the first ship­ment of LNG from Gor­gon.

CME chief ex­ec­u­tive Reg Howard-Smith said the mile­stone rep­re­sented a mas­sive in­vest­ment in the fu­ture of WA.

“The Gor­gon pro­ject is fore­cast to add al­most $14 bil­lion each year to Aus­tralia’s GDP right through un­til 2040,” he said.

“It will also boost State and Fed­eral Govern­ment rev­enues by more than $70 bil­lion from 2009 to 2040.”

Mr Howard-Smith ac­knowl­edged the en­vi­ron­men­tal ste­ward­ship and com­mu­nity in­vest­ments de­liv­ered by the pro­ject and its joint ven­ture part­ners, in­clud­ing the $34 bil­lion spent on lo­cal goods and ser­vices.

“CME and its mem­bers con­grat­u­late the pro­ject on this ma­jor mile­stone,” he said.

Pic­ture: Chevron

The Asia Ex­cel­lence leaves Bar­row Is­land.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.