Chevron Australia, along with its joint venture partners, has unveiled its plan to go ahead with the second stage of the offshore development at its Gorgon natural gas facility located off the north-west coast of Western Australia.
Under Gorgon Stage Two, the partners will undertake the expansion of the subsea gas gathering network to ensure natural gas supply to the 15.6 million tonnes per annum LNG plant and domestic gas plant on Barrow Island.
The second phase of the development at the natural gas facility will see the partners take up new wells in the Gorgon and Jansz-Io fields, and associated offshore production pipelines and subsea structures.
Chevron Australia managing director Nigel Hearne said: “Our world-class natural gas facilities have transformed Chevron into a leading and reliable supplier of cleaner-burning natural gas to customers in the region.
“Through ongoing collaboration, we need to invest in both the infrastructure and the local skills and capability required to maintain our long-term energy position and contribute to the jobs of the future.”
Though the cost of the proposed future development was not disclosed, the company noted that the development falls within its annual investment range of $18bn to 20bn through to 2020.
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Hearne further added: “Benefits are expected to flow through to Australian industry, arising from local project management, drilling and completion activities and subsea infrastructure installation.”
Chevron operates the Gorgon project with a 47.3% interest, while the remaining interest is held by the Australian subsidiaries of ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), Tokyo Gas (1%) and JERA (0.417%).
Drilling under Gorgon Stage Two is expected to begin next year.
The Western Australia Government expects the project to create several jobs in the areas of drilling, subsea installation, pipe-laying and project management.
Additionally, the government believes the project will boost domestic gas supplies.