Third Gor­gon train started

Pilbara News - - News - Peter Wil­liams and Gareth Costa

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.

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