Chevron, Gorgon Partners OK $2B to Drill for More Gas

Chevron Corp’s Australian unit and its joint venture partners have reached a final investment decision to further develop the massive Gorgon natural gas project in Western Australia, it said in a statement on Friday.

Chevron Australia and its partners — including Exxon Mobil Corp. and Shell Plc — will spend A$3 billion ($2 billion) connecting two offshore natural gas fields to existing infrastructure and processing facilities on Barrow Island as part of the Gorgon Stage 3 development, it said in the statement. Six wells will also be drilled. 

Gorgon, on the remote Barrow Island in northwestern Australia, is the largest resource development in Australia’s history, and produces about 15.6 million tons of liquefied natural gas a year.