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Money Chevron announces $5 billion Gorgon gas expansion off WA

14:06  15 april  2018
14:06  15 april  2018 Source:   abc.net.au

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Chevron announces it will proceed with stage two of its multi- billion -dollar Gorgon gas project off WA , which is expected to create hundreds of jobs, as unions urge the company to employ local workers.

(0.5Mtpa for 20 years from Gorgon and Chevron system gas ). The Gorgon Joint Venture announced plans to establish a domestic gas project, including plans for progressive expansion to enable delivery of 300 terajoules of "Burying Pollution Tested With . 5 Billion Project in Australia ".

The stage-two Gorgon expansion will cost an estimated $5 billion.© Provided by ABC News The stage-two Gorgon expansion will cost an estimated $5 billion.

Industry leaders and the State Government have welcomed Chevron's decision to proceed with the second stage of the multi-billion-dollar Gorgon project expansion off Western Australia's north-west coast.

The latest phase of the large-scale gas project, which is situated 150 kilometres off the WA coast, north of Onslow, is estimated to cost more than $5 billion and create hundreds of jobs in the resources sector.

It will include new wells in the Gorgon and Jansz-lo fields, as well as drilling, sub-sea installation and pipe-laying while the major gas sub-sea expansion is underway.

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Chevron announces it will proceed with stage two of its multi- billion -dollar Gorgon gas project off WA , which is expected to create hundreds of jobs, as unions urge the company to employ local workers.

Chevron 's Gorgon Project will produce liquefied natural gas (LNG) and domestic gas on Barrow Island for Australia and the world. The Gorgon Project is being constructed on Barrow Island, located about 37 miles (60 km) off the northwest coast of Western Australia .

The offshore Gorgon project is one of the largest and costliest energy projects in the world, costing over $69 billion. It employed around 10,000 people during the construction of the processing facility at Barrow Island, west of Karratha.

WA Premier Mark McGowan said the project would mean jobs and growth for the state.

"This investment is another sign that WA is getting back on track — the economy is improving, confidence is up and jobs are being created," the Premier said in a statement.

He said the project was one of the biggest resources projects in Australian history and the economic downturn was improving.

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Apart from resulting in creation of jobs, Chevron 's (CVX) Gorgon expansion project is likely to boost the domestic supply of gas from 200 terajoules (TJ) to about 300TJ a day.

Apart from resulting in creation of jobs, Chevron 's (CVX) Gorgon expansion project is likely to boost the domestic supply of gas from 200 terajoules (TJ) to about 300TJ a day.

"Delivering jobs to thousands of WA workers and big benefits to the wider economy … The GS2 development represents an exciting phase of what has been a WA success story and is another sign the state's economy is turning the corner." Mr McGowan said.

Less reliance on resources urged

Chamber of Commerce and Industry WA chief executive Chris Rodwell said the project would create more opportunity for the local economy.

"It's important because it drives investment, it creates jobs and it also secures a future source of domestic gas supply — overall it is an excellent opportunity for WA businesses to be involved in the project," Mr Rodwell said.

But he said the State Government could not continue to rely on the resources sector for the bulk of its revenue.

"We still need to diversify [the economy]," Mr Rodwell said.

"Resources are a really important backbone for our economy, but WA needs to use projects like this to diversify the economy and not be complacent on opportunities."

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Apart from resulting in creation of jobs, Chevron 's (CVX) Gorgon expansion project is likely to boost the domestic supply of gas from 200 terajoules The billion project is one of the costliest energy projects, employing more than 10,000 people to construct the processing facility at Barrow Island.

Australia ’s biggest resources project — the Gorgon gas plant off the Pilbara — will deliver a much-needed boost to the WA economy after oil giant Chevron gave the go-ahead for the $ 5 .1 billion second stage of the project.

State secretary of the Australian Manufacturing Workers Union Steve McCartney said West Australians need to be the primary benefactors.

"We want to make sure that local companies get some work. Out of the last Gorgon project. West Australia only got 23,000 tonnes of manufacturing out of nearly 400,000 tonnes, he said.

"The big risk for this project is that we get Australian local content and West Australian jobs on the job — if they are priority, then West Australia has done a good thing in investing further. If it isn't then what are we doing it for? " Mr McCartney said.

"The big winners would be Australia if they get Chevron to pay their taxes and they use local content and employ local workers."

Gorgon is a joint venture between Chevron, which has a 47 per cent stake, ExxonMobil (with 25 per cent), Shell (also 25 per cent), Osaka Gas, Tokyo Gas and JERA.

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