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Petroleum industry

Chevron's Gorgon LNG Project Nears Approval in August

Strategic Insights

— 1 min read

Chevron Corp. and its partners may approve development of the A$50 billion ($39 billion) Gorgon liquefied natural gas venture in Western Australia as early as late August, according to a research note from JPMorgan Chase & Co. The project, which has signed fuel-supply agreements with Japanese utilities, has awarded over A$1.7 billion in contracts and is preparing for construction, led by Leighton Holdings Ltd. However, Chevron's focus is on securing timely government environment approvals to make a final investment decision in the coming months.

Key Takeaways:

  • Chevron's Gorgon LNG project, a A$50 billion investment, is nearing approval in late August, according to JPMorgan's Alistair Reid.
  • The project has signed fuel-supply agreements with Tokyo Gas Co., Osaka Gas Co., and Chubu Electric Power Co. Inc.
  • Chevron's partners include Exxon Mobil Corp. and Royal Dutch Shell Plc, with both having awarded contracts worth over A$1.7 billion for the project.
  • Leighton Holdings Ltd., Australia's largest construction company, won a contract to prepare the site and build temporary facilities.
  • The project has a capacity to produce 15 million metric tons of LNG per year.
  • State Premier Colin Barnett estimates the project's construction costs at A$50 billion, making it the country's biggest resources project.
  • Chevron is currently focused on securing timely government environment approvals to make a final investment decision in the coming months.

Statistics:

  • The Gorgon LNG project is expected to produce 15 million metric tons of LNG per year.
  • Construction costs for the project are estimated at A$50 billion by State Premier Colin Barnett.
  • Chevron and its partners have awarded over A$1.7 billion in contracts for the project.
  • Leighton Holdings Ltd. won a contract worth under A$1.7 billion for site preparation and temporary facilities.

Sources:

  • JPMorgan Chase & Co. research note, led by Alistair Reid, dated yesterday.
  • Nicole Hodgson, Perth-based spokeswoman for Chevron.
  • Euclid Infotech Pvt. Ltd.
  • State Premier Colin Barnett (March).
  • Chevron Corp. (project details).
  • Tokyo Gas Co.
  • Osaka Gas Co.
  • Chubu Electric Power Co. Inc.
  • Leighton Holdings Ltd.

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