Chevron to go ahead with Gorgon LNG expansion offshore Australia

|About: Chevron Corporation (CVX)|By:, SA News Editor

Chevron (NYSE:CVX) says it will proceed with the second stage of its giant Gorgon liquefied natural gas export plant off the Western Australia coast.

Operator CVX and its joint venture partners - including Exxon Mobil (NYSE:XOM) and Royal Dutch Shell (RDS.A, RDS.B) - plan to sink 11 new wells in the Gorgon and Jansz-Io fields and build offshore pipelines and subsea structures to pipe the gas to the nearby 15.6M metric tons/year LNG plant on Barrow Island.

CVX does not specify a cost on stage two of the project but says development will fit within its planned annual investment of $18B-$20B through 2020.

Drilling reportedly is planned to start next year, with the full expansion taking about four years.

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