$4B Chevron-run Project Advances
A $4 billion (AU$6 billion) project to ensure long-term gas supply from the Gorgon Project to customers in Australia and Asia will proceed, Chevron (NYSE: CVX) reported late Thursday.
Operated by Chevron Australia Pty Ltd., the newly approved Jansz-Io Compression (J-IC) project will supply gas to the Gorgon complex on Barrow Island off northwestern Western Australia, Chevron noted in a written statement emailed to Rigzone.
“Using world-leading subsea compression technology, J-IC is positioned to maintain gas supply from the Janz-Io field to the three existing LNG trains and domestic gas plant on Barrow Island,” remarked Nigel Hearne, president of Chevron Eurasia Pacific Exploration and Production.
Chevron stated that J-IC will modify the existing Gorgon development by constructing and installing:
- a 27,000-tonne normally unattended floating Field Control Station (FCS)
- approximately 6,500 tonnes of subsea compression infrastructure
- an 84-mile (135-kilometer) submarine power cable linked to Barrow Island.
The map below from Chevron Australia’s website shows the locations of the Jansz-Io and Gorgon fields in relation to the Gorgon plant.
Hearne called J-IC Chevron’s most significant capital investment in Australia since the sanctioning of Gorgon Stage 2 three years ago. Gorgon Stage 2, which is approaching the end of its installation phase, will supply gas from four new Jansz-Io and seven new Gorgon wells, noted Chevron. The company expects J-IC construction and installation activities to take five years to complete.
“This will maintain an important source of clean-burning natural gas to customers that will enable energy transitions in countries across the Asia Pacific region,” commented Hearne.
Chevron owns a 47.333% interest in the Gorgon Project. ExxonMobil (NYSE: XOM) and Shell (NYSE: RDS.A) each hold 25%. Other Gorgon co-venturers include Osaka Gas (TYO: 9532) (1.25%), Tokyo Gas (OTCMKTS: TKGSY) (1%), and JERA (0.417%).
Separately, Aker Solutions (OTCMKTS: AKRTF) revealed Friday that Chevron Australia will use its subsea compression technology for the J-IC project. The firm noted that it is in talks with Chevron to finalize the contract, which it expects will be worth approximately $814 million (NOK 7 billion; AU$1.1 billion)
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