Chevron, ExxonMobil, Shell To Develop World's Largest Gas Field
CANBERRA, Australia — Energy giant Chevron announced on Monday that the Gorgon gas field, one of the world's largest, will be developed off northwest Australia with export contracts already signed with China, India, Japan and South Korea.
Prime Minister Kevin Rudd described Gorgon as Australia's biggest-ever resource development which would generate 300 billion Australian dollars ($257 billion) in export earnings.
Chevron Australia, which owns a half share in the project and is the field operator, said in a statement that it had agreed with its partners ExxonMobil Corp. and Royal Dutch Shell to develop the gas field with a plant constructed on Barrow Island off Western Australia state.
The project appeared certain last month when PetroChina Co., Asia's largest oil and gas company, agreed to buy 2.25 million tons of liquefied natural gas per year from the gas field in a deal worth about AU$50 billion. Chevron and its partners last week announced further deals worth AU$70 billion to sell Gorgon gas to Japan and South Korea.
The joint venture partners decided to proceed with the project after production licenses and a development approval were granted by the state government.
Trade Minister Simon Crean told Parliament that the project was expected to boost Australia's gross domestic product by AU$65 billion and generate AU$40 billion in government revenue over the next 30 years. It would also create 10,000 jobs during it construction phase which begins in February.
Much of the carbon dioxide emitted from the project is to be buried beneath Barrow Island to reduce its contribution on global warming.
"This demonstrates Australia's contribution and it's ability to play as a global and clean energy super power," Crean told Parliament.
The project's first phase of development is estimated to cost about AU$43 billion, he said.
First work will begin immediately on Barrow Island, and the first gas is expected to be delivered in 2014.
Chevron Australia managing director Roy Krzywosinski said the project would provide an economic boost over the next 40 years.
"We anticipate AU$33 billion will be spent on Australian goods and services with flow-on effects cascading through the Western Australian economy," he said.
ExxonMobil and Shell each holds a 25 percent stake.
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ROD McGUIRK | 09/14/09 06:54 AM |