Chevron will invest A$40 million (US$29 million) in Western Australian lower carbon projects as part of an offsets package to address a carbon dioxide injection shortfall at the Gorgon LNG project.
The package will also see Chevron fulfil its regulatory obligations through the acquisition and surrender of 5.23 million greenhouse gas offsets.
The offsets package stems from a CO2 injection shortfall at Gorgon over the five-year period ending 17 July 2021.
"The package we have announced will see us make good on our commitment to offset the injection shortfall, and ensures we meet the expectations of the regulator, the community and those we place on ourselves as a leading energy producer in Australia,” said Chevron Australia managing director Mark Hatfield.
He said Chevron was proud of the emissions reductions being achieved by the Gorgon carbon capture and storage system, despite its early challenges.
“Since starting up in August 2019, the Gorgon carbon capture and storage system has safely injected approximately 5.5 million tonnes of greenhouse gas emissions and is demonstrating the importance of CCS technology in advancing a lower carbon future."
The company will work with the Western Australian government to develop lower carbon projects and unlock emissions reduction potential across the state.
The Chevron-operated Gorgon project is owned by operator Chevron (47.333%), ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), Tokyo Gas (1%) and JERA (0.417%).
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