16/04/2018 - 16:07

Gorgon build will mean workflow for contractors

16/04/2018 - 16:07

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Chevron’s decision to build stage two of the Gorgon LNG project, announced on the weekend, takes the total value of petroleum industry investment committed or under construction in Western Australia to around $55 billion, according to state government data.

Gorgon build will mean workflow for contractors
Chevron's Gorgon facility on Barrow Island.

Chevron’s decision to build stage two of the Gorgon LNG project, announced on the weekend, takes the total value of petroleum industry investment committed or under construction in Western Australia to around $55 billion, according to state government data.

But that number is set to dip sharply in the next year as two major projects, Inpex’s Ichthys and Shell’s Prelude, move into the production phase.

Data provided by the Department of Mines, Industry Regulation and Safety shows about $50 billion of petroleum industry capital expenditure committed or under construction, while Chevron’s Gorgon stage two development is expected to grow that figure by around $5 billion.

Aside from Prelude and Ichthys, other major investments under way include Woodside Petroleum’s Greater Enfield project and its Greater Western Flank two, both due for production in the middle of next year.

Chevron was tight lipped about exactly what the stage two development would entail, but the company’s industry participation plan highlighted what the major work is likely to be.

In the Gorgon field, it will be infield development of manifold one and development of manifold four, while in the neighbouring Jansz-Io field, investment will be centred around the drill centre three manifold.

The growth project is necessary to ensure enough gas is available for the company’s 15.6 million tonne per annum LNG processing plant on Barrow Island as fields gradually deplete over their lifetimes.

The plant has three LNG trains.

Chevron, which holds 47.3 per cent of the project, is partnered with ExxonMobil (25 per cent), Shell (25 per cent), Osaka Gas (1.25 per cent), Tokyo Gas (1 per cent) and JERA (0.417 per cent).

Premier Mark McGowan welcomed the announcement.

"This is a major state-building project that will deliver a significant boost to our economy,” Mr McGowan said.

"This investment is another sign that WA is getting back on track - the economy is improving, confidence is up and jobs are being created.

"I met with Chevron Australia's managing director Nigel Hearne last week, and the state government is delighted to work together with Chevron Australia to ensure the benefits to Western Australians are maximised on this project long into the future.

"The Gorgon project off the north-west coast is one of the biggest resources projects in Australia's history, delivering jobs to thousands of WA workers and big benefits to the wider economy.

"The GS2 development represents an exciting phase of what has been a WA success story, and is another sign that the state's economy is turning the corner."

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