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Friday, 05 December, 2008, 17:20 GMT | more >>

Chevron seals new Gorgon LNG deal



By Upstream staff 

Chevron has signed an agreement with its South Korean affiliate GS Caltex to sell liquefied natural gas from the proposed Gorgon project in Western Australia.

Chevron Australia said in an email statement that under the agreement, it will sell 250,000 tonnes of LNG from its share of Gorgon gas to refiner GS Caltex over 20 years. GS Caltex is 50% owned by Chevron.

Chevron is the operator and has a 50% stake in the Gorgon Project, estimated to hold more than 40 trillion cubic feet of gas. ExxonMobil and Shell hold 25% each.

Last year, the Gorgon partners scrapped a 2006 deadline for making a final decision on developing the delayed project after facing a series of environmental issues and jump in costs. They have yet to set a new deadline.

Chevron has largely sold most its share of Gorgon LNG. Earlier sales agreements signed with Japanese utilities Tokyo Gas Chubu Electric and Osaka Gas total 4.2 million tonnes a year for 25 years - representing a total volume of more than 100 million tonnes and estimated value of over $22 billion, Chevron said.

Chevron Australia said the balance of its share of LNG from the first two trains of the Gorgon project will be available to supply markets such as North America, where Chevron is pursuing a portfolio of options for importing natural gas.


Thursday, 03 May, 2007, 07:43 GMT  | last updated: Thursday, 03 May, 2007, 07:43 GMT

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