$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.
IMAGE SOURCE: Chevron
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)
To contact the author, email mveazey@rigzone.com.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- 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
- UK Grid Operator Receives Aid to Advance Rural Decarbonization
- 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
- 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
- Standard Chartered Reiterates $94 Brent Call