Chevron has reached a long awaited milestone for the Gorgon project, now kicking off the cool-down of the plant ready for LNG production.
The long delayed $US54 billion LNG project, best known for its phenomenal cost blowouts, has finally announced that an LNG cargo reached the island last week, which will be used to gas the plant and cool it down prior to processing of the first shipment.
The Gorgon plant was originally scheduled to begin production in late 2014.
The project, initially approved in 2009, was budgeted for $US34 billion, however bad weather and extensive delays dramatically increased the overall cost.
Chevron Australian managing director Roy Krzywosinski said the commissioning cargo was essential for “final testing of critical systems” at the plant, as well as cooling it down efficiently.
“As the largest single-resource development in Australia’s history, this is a significant milestone for Gorgon and is a testament to outstanding team work by our workforce, contractors and partners,” he said.
“Gorgon will be a long-term supplier of natural gas to our customers in the Asia-Pacific region and in Australia, delivering energy security as well as significant long-term economic benefits to Australia for decades to come.”
The Gorgon plant on Barrow Island will produce a nameplate 15.6 million tonnes per annum, with a domestic gas plant to deliver 300 terajoules of gas per day to the Western Australian market.
According to Chevron, the liquefaction of natural gas occurs at -162 degrees celcius, and reduces the volume approximately 600 times.
The Gorgon project is a joint venture between Chevron Australia as the operator (47.3 percent), ExxonMobil (25 per cent), Shell (25 per cent), Osaka Gas (1.25 per cent), Tokyo Gas (1 per cent) and Chubu Electric Power (0.417 per cent).