$1.98 billion chapter to ‘world-class’ gas story coming up next off Australia
Chevron Australia, a subsidiary of the U.S. oil and gas giant Chevron, has decided to move forward with the third stage of development for its giant gas project off the northwest coast of Western Australia (WA) to support long-term local and regional energy security.
While disclosing a final investment decision (FID) on the Gorgon Stage 3 development, Chevron explains that the A$3 billion ($1.98 billion) backfill development will connect the offshore Geryon and Eurytion natural gas fields in the Greater Gorgon Area to the existing subsea gas gathering infrastructure and processing facilities on Barrow Island.
Balaji Krishnamurthy, Chevron Australia’s President, said the development would maintain production at Gorgon, enabling the long-term supply of domestic gas for WA households and industry, and liquefied natural gas (LNG) for international customers in Asia.
Krishnamurthy underlined: “Gorgon is a world-class energy asset which plays a crucial role in supporting the economic development and energy security of millions of people in Australia and across the Asia Pacific region. “With the development of the Geryon and Eurytion fields – to join the existing Gorgon and Jansz-Io fields in providing gas supply for the processing facilities – we can continue providing the reliable energy the world needs, maintaining thousands of highly skilled jobs in Australia, supporting regional WA communities and contributing to government revenue.”
The development entails the installation of three manifolds and a 35-kilometer production flowline among other associated infrastructure, with six wells expected to be drilled in the two fields about 100 kilometers northwest of Barrow Island in water depths of about 1,300 meters.
As part of the original development plan for Gorgon, which has the capacity to produce 300 terajoules per day of gas for the WA market and 15.6 million tonnes of LNG per year, Gorgon Stage 3 is the first in a series of planned subsea tie-backs.
“Gorgon Stage 3 is a cost-competitive development which will optimise existing infrastructure and complement the well-progressed Jansz-Io Compression Project and previously completed Gorgon Stage 2 infill development,” added Krishnamurthy.
Source: offshore-energy.biz