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The cost of Chevron’s (CVX -0.8%) massive Gorgon liquefied natural gas project in Western...

The cost of Chevron’s (CVX -0.8%) massive Gorgon liquefied natural gas project in Western Australia could balloon as much as $20B, and CVX is expected to reveal the cost blow-out before year-end, sources say. CVX’s current cost estimate for the 15M metric tons/year LNG project, which is expected to deliver its first gas in 2014, is ~$37M.
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Comments (5)
  • wigit5
    , contributor
    Comments (4248) | Send Message
     
    So the original cost estimate was 37M as in million, and now it could be 20B as in Billion?

     

    those damn decimal places
    14 Nov 2012, 10:50 AM Reply Like
  • Dividend Garden
    , contributor
    Comments (453) | Send Message
     
    That's quite an adjustment. Who did the original cost estimate, and what assumptions changed?
    14 Nov 2012, 10:56 AM Reply Like
  • wigit5
    , contributor
    Comments (4248) | Send Message
     
    My thoughts exactly...
    14 Nov 2012, 11:20 AM Reply Like
  • Dividend Garden
    , contributor
    Comments (453) | Send Message
     
    From the article:

     

    "The paper cited the high Australian dollar, union demands, high-cost local manufacturing and productivity issues as the reasons behind the expected cost increase."
    14 Nov 2012, 11:32 AM Reply Like
  • cjkitch
    , contributor
    Comments (10) | Send Message
     
    Well they have 21.5B in the bank so should be no problem....
    14 Nov 2012, 05:20 PM Reply Like
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