Project Snapshot
Gorgon Project
Facility Type: LNG
Scope: New Construction
Owner: Gorgon JV (Chevron, 50%; ExxonMobil, 25%; Shell, 25%)
Location: Barrow Island  Australia
Region: Australasia
Modified:  September 10, 2008

Project description

First discovered in 1981, the Greater Gorgon gas fields located offshore northwestern Australia have an estimated 40 Tcf of gas and a development life span of 60 years. These massive assets are being converted to LNG by the Gorgon JV, which includes the Australian subsidiaries of Chevron (operator with a 50% stake), ExxonMobil (25%), and Shell (25%).

Approved by the Australian authorities in 2007, the LNG project includes 56 miles (90 kilometers) of subsea pipelines from the fields to Barrow Island, where the facilities will be located. Approved LNG facilities include two 5 million tonne per year LNG trains, condensate handling units and a loading berth for LNG tankers. The Gorgon project also includes carbon dioxide reinjection units and a 300 TJ/d domestic gas plant to supply natural gas to Australia.

Since governmental approval the JV has applied for approval of another 5-million tonne per year LNG train, which takes Gorgon's LNG processing capabilities to 15 million tones a year. Governmental approval is expected.

The Kellogg JV, consisting of KBR, JGC, Hatch and Clough, was awarded the FEED for the processing facilities, LNG plant and export facilities.

Gorgon LNG has been committed to a number of markets worldwide. LNG will be shipped to the Sempra Energia Costa Azul LNG terminal in Mexico. Additionally, Gujarat State Petroleum Corp. in India has signed an MOU for 0.5 Mtpa LNG, and PetroChina has signed a Heads of Agreement for 1.0 Mtpa LNG for 20 years. Japanese companies Tokyo Gas, Chubu Electric and Osaka Gas have all inked a heads of agreement for the purchase of Gorgon LNG. GS Caltex of South Korea has signed a 20-year agreement as well.

The estimated total cost of the Gorgon project is $17.61 billion.

  Key Stats
Major units:
subsea pipeline, three 5 million tonne per year LNG trains, condensate handling units, marine export system, carbon dioxide reinjection units, 300 TJ/d domestic gas plant
LNG, condensate, natural gas
Post-project processing capacity:
15 million tones per year, 300 TJ/d
Project cost:
$17.61 billion
Kellogg JV (KBR, JGC, Hatch and Clough), FEED for downstream processing facilities, LNG plant and marine export facilities
  Related Articles
Chevron Sees Cost Jump at Australia Gorgon LNG Project
Dec 12, 2013 - Chevron Corp raises the cost of its giant Gorgon liquefied natural gas project in Australia by $2 billion, the second increase in just over a year to take the total cost to $54 billion.
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Sep 12, 2013 - The LNG market looks to be tight in the years ahead given a shortage of new projects lined up, partly due to rising costs as demand for contractors to do the work has surged, Chevron's vice chairman said Wednesday.
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Feb 20, 2013 - Royal Dutch Shell PLC's top Australian executive said Wednesday that she is in no rush to commit to an expansion of Chevron Corp.'s giant Gorgon gas export project that only months ago suffered a cost blowout in its first stage.
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Jan 29, 2013 - When touching ground on Western Australia's (WA's) Barrow Island, every worker, airplane and piece of equipment is subject to close inspection, scanning and disinfection treatment before carrying on to Chevron's massive Gorgon development.
Chevron CEO: Gorgon Project Remains Economical
Nov 29, 2012 - While the costs of the massive Gorgon Australian natural-gas project have increased by an unspecified amount, the project remains economical, Chevron's chief executive said Thursday.
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Chevron Says Gorgon LNG Costs Remain Uncertain
Nov 14, 2012 - Chevron says the cost of completing the Gorgon LNG project remains uncertain and it will wait a few more months before updating its current $44.9 billion price tag.
Chevron's Gorgon LNG Project Cost May Rise A$20 Billion - Report
Nov 13, 2012 - An LNG development in Australia operated by Chevron faces a cost increase of over 20 billion Australian dollars (US$20.9 billion).
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Nov 09, 2012 - SapuraClough confirms that an outbreak which affected a number of people onboard one of its vessels has been contained, and that it is deploying additional health resources.
Union Calls for Demobilization, Inspection of Gorgon Barges
Nov 08, 2012 - The Australian Manufacturers Workers' Union is demanding for two vessels working on the Gorgon LNG to demobilize close to 50 ill crew members who are asked to work despite being indisposed.
Chevron Warns Future Australian LNG Projects at Risk
Aug 23, 2012 - Chevron Australia's top exec said cost increases and poor labor productivity have put the country's LNG industry at a crossroads.
Australia's LNG Skilled Labor Concerns Mount
Aug 20, 2012 - As Australia advances into the global LNG stage, it realizes it needs to quickly address the pressing issue of a shortage of skilled workers.
Gorgon LNG Vessels Contract Goes to Miclyn
Aug 03, 2012 - Miclyn Express Offshore wins contracts totaling $25 million (AUD24 million) for three vessels by Saipem to support construction activities at Chevron's Gorgon LNG project.
GE Scores Gorgon LNG Service Contract
Jul 20, 2012 - Australia's GE Oil and Gas wins a $600 million service contract which includes the maintenance of compressor trains and associated equipment at the Gorgon LNG project.
Australia LNG Project Nears Critical Point
Apr 09, 2012 - Australia's biggest resources project is taking shape on Barrow Island's east on a confined patch of red dirt scraped clear of spinifex and ant hills.
CB&I Wins $2.3B Gorgon Contract
Jul 14, 2011 - Chevron Australia has awarded CB&I a contract for the mechanical, electrical and instrumentation work for three Gorgon LNG trains.
JX Nippon to Buy Portion of Chevron's Gorgon Offtake
May 10, 2011 - JX Nippon Oil and Energy Corp. will buy a portion of Chevron's offtake of LNG from the Gorgon Project.
Chevron, Kyushu Electric Sign Gorgon SPA
Jan 24, 2011 - Chevron Corp. on Monday announced that its Australian subsidiary has signed a Sales and Purchase Agreement (SPA)with Kyushu Electric Power Co. for a portion of Chevron's offtake of liquefied natural gas (LNG) from the Gorgon Project.
Chevron Awards Clough Gorgon Pipeline Contract
Dec 16, 2010 - Clough Limited on Wednesday announced that Chevron Australia has entered into a contract valued at approximately A$300 million with the Clough Sea Trucks Joint Venture (CSJV) for the Domestic Gas (DOMGAS) scope of work on the Gorgon Project.
Chevron Outlines 2011 Spending Plan for LNG, Downstream
Dec 09, 2010 - Chevron Corp. on Thursday announced a $26.0 billion capital and exploratory spending program for 2011.
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Dec 07, 2010 - Australia will need to import workers if it wants to take full advantage of its abundant natural resources, the nation's largest private construction company says.
Leighton Wins $765M Gorgon Project
Sep 23, 2010 - A subsidiary of Leighton Holdings Ltd has won an A$800 million (US$764.56 million)-plus contract from Chevron Australia to deliver the civil and underground works for the Gorgon gas project in Western Australia.
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Aug 17, 2010 - Three significant deep water gas discoveries off the west coast of Australia could support the expansion of two giant LN projects.
Chevron, Kyushu Sign Multiple LNG Deals
Jan 26, 2010 - Chevron Corp. announced Tuesday that its Australian subsidiaries have signed multiple Heads of Agreements (HOAs)with Kyushu Electric Power Co., Inc. for the delivery of LNG from the Chevron-operated Gorgon and Wheatstone natural gas projects.
Air Products To Supply LNG Heat Exchangers for Gorgon
Jan 22, 2010 - Air Products has signed an agreement with Chevron Australia Pty Ltd. to supply its proprietary LNG process technology and equipment for three process trains producing up to 15 million tons of LNG per annum at the Gorgon Project.
Neptune Wins Gorgon Contract
Jan 12, 2010 - Neptune Marine Services has been contracted to provide diving, survey and vessel support services on Chevron Australia's Gorgon LNG project in Western Australia.
Chevron, Nippon Sign 15-year Gorgon Deal
Jan 07, 2010 - Chevron's Australian subsidiaries and Nippon Oil Corp. have signed a Heads of Agreement (HOA) for the delivery of 0.3 million metric tons per year (MTPY) of LNG for 15 years from the Chevron-operated Gorgon Project in Western Australia.
Chevron, Chubu Sign Major Gorgon Deal
Dec 16, 2009 - Chevron Corp. on Wednesday announced that its Australian subsidiaries have signed binding long-term Sales and Purchase Agreements (SPAs)with Chubu Electric Power for a portion of Chevron's share of liquefied natural gas (LNG) from the Gorgon Project.
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Dec 04, 2009 - As construction starts on Australia's biggest ever resources development, the Gorgon liquefied natural gas project, and other large projects are approved for construction, there are signs of feared labor shortages and renewed labor union power.
Australian Competition Watchdog Okays Joint Marketing of Gorgon Gas
Nov 05, 2009 - Australia's competition watchdog will allow natural gas from the massive Chevron-led Gorgon LNG development offshore Western Australia to be marketed jointly by the project partners.
GE Oil & Gas Wins $400M Gorgon Contract
Oct 22, 2009 - GE Oil & Gas on Thursday announced it has been awarded a competitive bid, worth over $400 Million, to deploy advanced liquefied natural gas (LNG) technology for the development of Gorgon, one of the world's largest untapped natural gas fields.
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Oct 21, 2009 - Hyundai Heavy Industries Co., Ltd. (HHI) has announced its success in the bid for module fabrication for the Barrow Island LNG Plant of the Gorgon Project.
New Discovery To Bolster Gorgon Supply
Oct 19, 2009 - Chevron Corp. on Sunday announced an additional natural gas discovery in the Greater Gorgon area's Carnarvon Basin, Australia's premier offshore hydrocarbon zone.
Gorgon's Glow Rubs Off On Woodside
Oct 01, 2009 - The rosy glow around liquefied natural gas projects engendered by the go-ahead of the A$43 billion Gorgon gas field development in Australia is rubbing off on Woodside Petroleum Ltd.
CB&I Wins Gorgon Tank Contract
Sep 30, 2009 - CB&I has been awarded a contract valued at approximately US$550 million by Chevron Australia Pty Ltd for the LNG and condensate storage tanks at the Gorgon LNG liquefaction project on Barrow Island in Australia.
ACCC Proposes To Allow Joint Marketing By Gorgon JV
Sep 17, 2009 - The Australian Competition and Consumer Commission issued a draft decision Thursday proposing to allow joint marketing of natural gas to customers in Western Australia by the members of the Gorgon Gas project joint venture.
Kogas, Chevron Sign Gorgon Pact - Aussie Official
Sep 15, 2009 - Australia's Minister for Resources Martin Ferguson announced a preliminary agreement between Korea Gas Corp. and Chevron Corp. for the delivery of liquefied natural gas
Gorgon Natural Gas Project Will Loom Large Off Australia
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KBR-led JV Wins Gorgon EPCM Contract
Sep 14, 2009 - Kellogg Joint Venture Group (KJVG) has been awarded by Chevron Australia Pty Ltd an estimated AUD 2.7 Billion EPCM contract for the LNG downstream and logistics portion of the multi-billion dollar Chevron-operated Gorgon LNG Project.
Chevron: Gorgon's A Go
Sep 13, 2009 - Chevron Corp. on Sunday announced that its subsidiary, Chevron Australia Pty Ltd, will proceed with the development of the Gorgon natural gas project offshore Western Australia.
ExxonMobil Announces Full Funding for Gorgon
Sep 13, 2009 - Exxon Mobil Corp. announced Sunday that the Gorgon liquefied natural gas (LNG) project has been approved for development by the project participants.
Chevron Secures Gorgon Sales Deals
Sep 10, 2009 - Chevron Corp. on Thursday announced that Australian subsidiaries of Chevron have signed three binding long-term Sales and Purchase Agreements (SPAs) for Chevron’s share of liquefied natural gas (LNG) from the Gorgon project.
Rudd Announces Gorgon Approval
Sep 01, 2009 - Australian Prime Minister Kevin Rudd announced on Tuesday the approval of granting licences and leases over the Gorgon gas project, clearing the way for the joint venture partners to sign a deal on the project later this month.
ExxonMobil May Make Gorgon Decision This Year
Aug 28, 2009 - One of the key partners in the proposed Gorgon liquified natural gas project says a final investment decision may be made before the end of 2009.
Gorgon Secures Final Environmental Approval
Aug 26, 2009 - The Chevron-led Gorgon gas project could begin before Christmas if the three joint venture partners follow the Australian government's final tick of approval with a decision to invest in the plan.
Western Australia: The Saudi Arabia of Natural Gas?
Aug 19, 2009 - Western Australia is set to become the "Saudi Arabia of natural gas" as other deals follow the signing of a $41.315 billion agreement to supply liquefied natural gas to China, Premier Colin Barnett says.
ExxonMobil, PetroChina Announce Gorgon Supply Deal
Aug 18, 2009 - Affiliates of Exxon Mobil Corp. and PetroChina Company Limited announced Tuesday they had signed a sales and purchase agreement for the long-term supply of LNG from the proposed Gorgon LNG Project in Western Australia.
Chevron: Final Gorgon Decision By Year End
May 01, 2009 - Chevron Corp. said Friday it expects to make a final investment decision on its multi-billion-dollar Gorgon liquefied natural gas project at Barrow Island in Western Australia before the end of the year.
Chevron Applauds Gorgon Decision
Apr 30, 2009 - Chevron Corp. on Wednesday welcomed the Western Australian Environmental Protection Authority's (EPA) recommendation that the revised and expanded Chevron-operated Gorgon Project could meet the EPA's environmental objectives.
Chevron Awards KBR FEED Contract for Gorgon Project
Sep 17, 2008 - KBR's Kellogg Joint Venture Group has been awarded a Work Authorization by Chevron Australia for approximately AUD $300 million to finalize FEED for the Chevron-operated Gorgon Project.
Chevron Commits To Gas for Local Use from Gorgon
Aug 12, 2008 - Chevron Corporation plans to include a 300 terrajoule (TJ) per day domestic gas operation as part of its A$20 billion (US$17.61 billion) Gorgon liquefied natural gas (LNG) project offshore Western Australia.
Chevron: Australia Discovery Boosts LNG Prospects
Jul 10, 2008 - U.S. energy major Chevron Corp said it has made a significant gas discovery at its Iago field off western Australia, which could help expand its nearby Wheatstone liquefied natural gas (LNG) project.
Gorgon Wants Production Ramped Up at LNG Project
Jan 04, 2008 - The Gorgon Gas Group faces another round of environmental hurdles after announcing plans to ramp up production at its proposed LNG project off Western Australia.
Gorgon LNG Project Takes Step Forward
Oct 10, 2007 - The Gorgon Joint Venture Participants -- Chevron, ExxonMobil and Shell -- on Wednesday welcomed a further step forward for the Gorgon Project.
Gorgon Clears Final Stage of State Approvals Process
Sep 07, 2007 - The Barrow Island Gorgon Gas Project has cleared the final stage of the Western Australia approvals process after the state's Environment and Climate Change Minister signed off on a set of stringent environmental conditions.

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