Chevron has once again increased its costings for the Gorgon liquefied natural gas project in Western Australia.
The project which has been under construction for four years has been parred 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 vice chairman George Kirkland said the economics of the project remain attractive.
“We continue to make steady progress against key project milestones and are applying lessons learned to our Wheatstone development which is almost 25 per cent complete,” he said.
Wheatstone, the company’s second Australian LNG project is forecast to cost $US29 billion.
“Approximately 75 per cent of our combined LNG offtake from the two projects is committed under firm, long-term sales and purchase agreements.”
The company is expecting to spend $39.8 billion on capital and investments throughout 2014, $2 billion less than this year.
The bulk of the spend has been allocated to Chevron’s upstream crude oil and natural gas exploration as well as production projects.
Chevron chief executive John Watson said 2013 has been a relatively peak year for investments.
“We also anticipate 2014 will represent the peak year for spending on our Australian LNG projects as we move them closer to first production,” he said.