Western Australia Breaks Ground for $39.4B Gorgon Project
WA Premier Colin Barnett has marked the formal start of works on Chevron's A$43 billion (US $39.39 billion) Gorgon project with a ceremonial groundbreaking on Barrow Island.
The groundbreaking marks the start of construction of a three-train, 15 million metric ton per year LNG facility that will create about 10,000 jobs during the peak construction phase with more than 3,500 direct and indirect jobs sustained throughout the life of the project.
With total gas resources of 40 trillion cubic feet, Gorgon will be the biggest resources project in Australia's history and make a significant contribution towards Western Australia's prosperity in the next 30 years.
Barnett said benefits from the project were already flowing to locally-based construction and manufacturing companies. Businesses including Howard Porter, Mermaid Marine, Ertech and Laing O'Rourke were among those awarded contracts.
"Today marks the formal start of work on the biggest resource project ever seen in Australia," he said.
"The scale of the project is big, but it's the flow-on benefits to WA companies and the creation of jobs as a result that provide tangible benefits to local people and their families.
"Hundreds of millions of dollars will be spent on ongoing, long-term maintenance and service contracts
"The State Government has a local content policy in place and has been working with the Chamber of Commerce and Industry through the Industry Capability Network to ensure local businesses are involved and will benefit from the Gorgon project."
While the majority of revenues from the project will flow to the Commonwealth, the Premier welcomed the Federal Government's pledge to spend 25 percent of expected Petroleum Resource Rent Tax from the project, worth up to $100 million a year, on WA infrastructure projects.
The first LNG from Gorgon is due in 2014 and domestic gas is planned by the end of 2015.
The Gorgon Joint Venture participants have entered into long term LNG sales and purchase agreements with customers in Japan, China, India, South Korea and North America.
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea