27/01/2010 - 08:29

Chevron finds gas in Greater Gorgon area

27/01/2010 - 08:29

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Chevron's long-term plans for its $43 billion Gorgon project have been given a boost today after the discovery of gas in the Greater Gorgon area in the Carnarvon Basin.

Chevron finds gas in Greater Gorgon area

Chevron's long-term plans for its $43 billion Gorgon project have been given a boost today after the discovery of gas in the Greater Gorgon area in the Carnarvon Basin.

Results from the Yellowglen-1 exploration well, located in the WA-268-P permit area about 250km northwest of Onslow, indicated a gas column of 137 metres.

The well was drilled to a total depth of 2,760m.

"We welcome this latest discovery as a potential new source of supply underpinning the Gorgon project and as Chevron continues to grow our natural gas business in Australia," Chevron Australia managing director Roy Krzywosinski said.

Chevron is the operator of the permit with a 50 per cent interest.

Construction of Gorgon is underway with first gas planned for 2014. The project is a joint venture between Chevron, ExxonMobil and Shell.

The gas discovery comes a day after Chevron struck multiple agreements with Japanese utility Kyushu Electric Power Co.

Under that deal, Kyushu will receive 300,000t of liquefied natural gas from the Gorgon project for up to 15 years and 800,000t of LNG from the Wheatstone project for up to 20 years.

Kyushu will also take a 1.83 per cent equity stake in the Wheatstone field licences and hold a 1.37 per cent in the Wheatstone gas processing facilities that will be built onshore near Onslow.

It's been reported the deal with Kyushu is valued at about $18 billion.

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