Chevron Corporation said yesterday that it and its partners will proceed with the development of one of the world's largest natural gas projects, the Gorgon liquefied natural gas project in Western Australia after it received regulatory approvals and licences from the Australian government.
Development proposals for the project were approved yesterday by Western Australian State Premier Colin Barnett, and production licenses were granted by the Australian Minister for Resources and Energy ministry.
The Gorgon project is operated by Chevron Australia in a joint venture with the Australian subsidiaries of ExxonMobil and Shell. Chevron is the lead operator of the Gorgon project and holds a 50-per cent stake while ExxonMobil and Shell hold 25 per cent each.
San Ramon, California-based Chevron said that the project is currently estimated to cost A$43 billion ($37 billion) for the first phase of development and the first gas will flow in 2014.
"With a total resource base of more than 40 trillion cubic feet of gas and an estimated economic life of at least 40 years, Gorgon will be a major contributor to our company's future growth," said Chevron chairman Dave O'Reilly, in a press release.
George Kirkland, executive vice president, Global Upstream and Gas, Chevron Corporation"Gorgon adds significant long-term reserves and production for Chevron, bolstering our strong resource replacement and underscoring the importance of Australia to our growing natural gas business."