Gorgon LNG project on schedule

Chevron’s Gorgon project is 80 per cent complete and on track to deliver first gas in the second half of 2015.

Chevron’s Gorgon project is 80 per cent complete and on track to deliver first gas in the second half of 2015.

In an investor conference, the company also said 65 per cent of the LNG to be produced from the project had been committed under long-term contracts.

Chevron’s second major gas project in WA, Wheatstone, has 82 per cent of its gas committed and is 30 per cent complete.

Once at full capacity, the two projects will produce 400,000 barrels a day.

The Gorgon project, which has been under construction for four years, has been marred by project delays and budget blowouts.

It is now estimated to cost $US54 billion, up from the previous forecast of $US52 billion and is now not due to be completed until mid-2015.

Originally the project was supposed to cost $US39 billion and begin shipping LNG in 2014.

Chevron says it will not meet its production target of 3.3 million barrels of oil-equivalent a day for 2017, announcing plans to sell $US10 billion of non-core assets over the next three years.

Chief executive John Watson said Chevron's growth strategy remained in tact "though some things have changed", 7 News reported.

Chevron will target its upstream portfolio in the sale, and also look to shift assets where production has already peaked, or ones too small to make a huge difference to production efforts.

"These are all assets that are late in their lives or very early in life and won't compete for capital inside our company," Watson said.

Chevron said global LNG demand will double by 2025, with more than 100 million tonnes a year of new supply required to meet energy needs globally.

It also highlighted its newly acquired position in the Great Australian Bight, where it is exploring a massive 32,000sqkm.

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