Chevron has invited domestic gas users to reserve supply from the massive Gorgon liquefied natural gas project as a final investment decision on the $50 billion operation is expected in the "coming months".
Chevron has invited domestic gas users to reserve supply from the massive Gorgon liquefied natural gas project as a final investment decision on the $50 billion operation is expected in the "coming months".
Chevron managing director Roy Krzywosinski also confirmed to delegates at the Australian Petroleum Production and Exploration Conference in Darwin that the company's wholly owned Wheatstone project was a standalone project.
The West Australian newspaper today reported that Woodside Petroleum had included Wheatstone in its development plans for the expanded Pluto LNG project.
"Proposed for construction at Ashburton North in Western Australia, the Wheatstone Project has the potential to anchor and facilitate the economic development for, not only the Wheatstone field, but for other nearby gas fields," Mr Krzywosinski said.
"Indeed, we estimate that there is between 25-to-35 trillion cubic feet of discovered, and yet-to-be discovered gas in that region.
"Bringing Wheatstone onstream is imperative to unlocking this potential in the West Carnarvon Basin."
Speaking on the Gorgon project, Mr Krzywosinski said the company is inviting expressions of interest for up to 150 terra joules per day of Gorgon domestic gas, starting from 2015.
"An increase in market penetration of domestic gas is another opportunity for Australia to reduce its overall greenhouse gas emissions with cleaner burning energy," he said.
Patersons oil and gas analyst Scott Simpson said this amount was equal to about 5 per cent of Gorgon's expected output.
Hartleys oil and gas analyst David Wall said WA's major industrial domestic gas consumers, including Alcoa of Australia and Burrup Fertilisers, were most likely to buy the gas.
These companies were among the most affected when a pipeline exploded at Apache Energy's Varanus Island gas processing plant near Barrow Island in June last year, slashing the state's domestic gas supply by a third.
The Gorgon project is gathering momentum with Chevron already increasing its workforce by 1,200 and the finalisation of contracts worth more than $500 million.
"As the project moves towards its final environmental approval, the Gorgon joint venture participants are poised to make a final investment decision in the coming months," Mr Krzywosinski said.
Gorgon is a JV with Shell and ExxonMobil.
Independent research firm ACIL Tasman recently revised its economic data for Gorgon, estimating the creation of 10,000 direct and indirect jobs at peak construction.
Previously the estimate was for 6,000 jobs.
"We also expect that over the first 30 years of the project, more than $33 billion will flow into local goods and services," Mr Krzywosinski
"What's more, we expect that Gorgon will generate about 40 billion dollars of government revenue and boost GDP by around 64 billion dollars net present value."
Gorgon is expected to make first LNG deliveries in 2014.
