Milestone underscores Chevron’s commitment to growing its LNG business in Asia
Perth, Western Australia., March 21, 2016 – Chevron Corporation (NYSE: CVX) today announced that its first shipment of liquefied natural gas (LNG) from the Gorgon Project has departed Barrow Island off the northwest coast of Western Australia. The cargo will be delivered to one of Chevron’s foundation buyers, Chubu Electric Power, for delivery into Japan.
“Departure of the first cargo from the Gorgon Project is a key milestone in our commitment to be a reliable LNG provider for customers across the Asia-Pacific region,” said Mike Wirth, executive vice president, Chevron Midstream and Development. “This is also important for our investors as we begin to generate revenue from a project we expect will operate for decades to come.”
LNG is an essential fuel for power generation across Asia and natural gas is among the fastest growing segments of Chevron’s energy portfolio. Chevron’s Australian projects are well located to supply natural gas for the region and more than 80 percent of Chevron’s Australian subsidiaries’ equity LNG from the Gorgon and Wheatstone projects is covered by sales and purchase agreements and heads of agreements with customers in the Asia-Pacific region.
The LNG cargo will be delivered by the Asia Excellence, one of Chevron's new state-of-the-art LNG carriers. To support Chevron’s growing position as a leading LNG supplier, Chevron Shipping Company is in the final stages of its largest shipbuilding and fleet modernization program in recent history, which includes the addition of six new LNG carriers to its operated fleet.
The Gorgon Project is supplied from the Gorgon and Jansz-Io gas fields, located within the Greater Gorgon area, between 130 km (80 miles) and 220 km (136 miles) off the northwest coast of Western Australia. It includes a 15.6 MTPA LNG plant on Barrow Island, a carbon dioxide injection project and a domestic gas plant with the capacity to supply 300 terajoules of gas per day to Western Australia.
The Chevron-operated Gorgon Project is a joint venture between the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (0.417 percent).
Chevron is one of the world's leading integrated energy companies and through its Australian subsidiaries, has been present in Australia for more than 60 years. With the ingenuity and commitment of thousands of workers, Chevron Australia leads the development of the Gorgon and Wheatstone natural gas projects; manages its equal one-sixth interest in the North West Shelf Venture; operates Australia’s largest onshore oilfield on Barrow Island, is a significant investor in exploration offshore Australia and provides operational support to exploration assets operated by its affiliates in New Zealand.
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