Fi­nal Gor­gon gas train ready

Pilbara News - - News - Peter Milne and Peter Wil­liams

Chevron is about to pro­duce liq­ue­fied nat­u­ral gas from the third and fi­nal train of the $US54 bil­lion Gor­gon LNG project and sees the po­ten­tial for more in­vest­ment in the off­shore Carnar­von Basin.

Ex­ec­u­tive vice-pres­i­dent up­stream Jay John­son said Chevron would be start­ing up train three this month af­ter a smooth com­mis­sion­ing process, a lit­tle ear­lier than pre­vi­ously flagged.

First LNG from the train would bring to an end a mam­moth 71⁄2-year construction ef­fort.

Pro­duc­tion from the Gor­gon field started last month adding to the gas from the Io-Jansz field that had been feed­ing the first two trains.

“At Gor­gon, trains one and two are pro­duc­ing about 230,000 oil equiv­a­lent bar­rels a day of LNG and do­mes­tic gas,” Mr John­son told Wall Street an­a­lysts last week.

Mr John­son said Chevron had about 50 tril­lion cubic feet of gas re­sources in the Carnar­von Basin off the Pil­bara and was the big­gest owner of liq­ue­fac­tion ca­pac­ity in WA.

“Over time, we’ll work this ad­van­tage and mon­e­tise the gas to our eq­uity fa­cil­i­ties at Gor­gon, Wheat­stone and North West Shelf, as well as to other avail­able third­party ca­pac­ity,” he said.

His call to use third-party ca­pac­ity echoed calls from both Chevron and Wood­side last year for the in­dus­try to col­lab­o­rate and share in­fra­struc­ture. Chief ex­ec­u­tive John Wat­son said Chevron’s Aus­tralian gas in­vest­ments were one of three legacy as­sets that would an­chor the en­ergy gi­ant’s fu­ture.

“A lead­ing gas po­si­tion in Aus­tralia that is now be­com­ing a sig­nif­i­cant cash gen­er­a­tor, with re­source de­vel­op­ment op­por­tu­ni­ties to keep Chevron and in­dus­try plants utilised and grow­ing,” he said.

BHP Bil­li­ton petroleum boss Steve Pas­tor also ex­pressed op­ti­mism about the Carnar­von Basin, in par­tic­u­lar the Scar­bor­ough gas field jointly owned with ExxonMo­bil and Wood­side.

Mr Pas­tor said BHP be­lieved Scar­bor­ough had sig­nif­i­cant value. “To­gether with Wood­side and Exxon, we’re well po­si­tioned to ma­ture de­vel­op­ment plans there,” he said.

The project has a pre­ferred op­tion of us­ing a float­ing LNG plat­form against pip­ing the gas to on­shore pro­cess­ing plants.

Mr Pas­tor said last week the part­ners were well aligned on prin­ci­ples re­gard­ing the best way to de­velop Scar­bor­ough.

“It’s too soon to de­clare,” he said. “We’re glad that we’ve got mul­ti­ple op­tions.”

He wel­comed Wood­side’s plan to ex­pand ca­pac­ity at the Pluto LNG plant near Kar­ratha.

“We like that be­cause it in­creases the op­por­tu­ni­ties for us to de­velop Scar­bor­ough in a value-max­imis­ing way,” Mr Pas­tor said.

Chevron’s $US54 bil­lion Gor­gon LNG project.

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