Third Gorgon train started
Chevron says it has begun production from the third and final train at the $US54 billion Gorgon LNG project in the North West.
The milestone puts the operator of the Barrow Island project on track to reach its full planned capacity. It comes after production started on the first train 12 months ago and the second in October.
The three trains are designed to produce 15.6 million tonnes per annum of LNG. Gorgon’s domestic gas plant has the capacity to supply 300 terajoules a day.
Gorgon’s train two is temporarily suspended. Chevron said on Monday it was because of work to enhance the train’s reliability.
The news from Chevron came as BP chief economist, Spencer Dale said Australia was well placed to supply LNG into the developing Asian market, the main source of energy demand over the next 20 years. “We expect extraordinary growth of LNG over the next five years of about 40 to 50 per cent, with Australia and the US being the two global supply centres and Asia the key demand source,” he said at a Committee for Economic Development of Australia lunch yesterday.
LNG was expected to overtake pipeline supply around the world because “it’s mobile and it can respond to price signals in a way pipelines can’t”. “We are moving to a globally integrated gas market just like we have a globally integrated oil market,” Mr Dale said.