Gorgon LNG Project produces first shipment
14 March 2016
Today I am delighted to join the Gorgon LNG Project team on Barrow Island, Western Australia, for the project’s first shipment of liquefied natural gas (LNG).
The $70 billion plus project is the largest single private investment ever undertaken in Australia and has created more than 10,000 jobs in the construction phase of the project alone. This significant contribution to our economy will continue over the project’s expected 40 year plus lifespan.
Gorgon is operated by Chevron in joint venture with ExxonMobil, Shell, Osaka Gas, Tokyo Gas and Chubu Electric Power. It is the first of a series of offshore LNG projects under development in Australia’s North West to come on line, with the Wheatstone, Ichthys and Prelude projects to follow.
With these projects now entering the production phase, Australia is on track to become the world’s largest exporter of LNG by 2019-2020. The majority of gas from Gorgon will be exported as LNG to Asian markets with the remainder being supplied to domestic markets in Western Australia.
The Gorgon project is an example of the strong innovation in Australia’s resources sector. The project includes the world’s largest commercial-scale carbon capture and storage initiative, reducing the project’s emissions by around 40 per cent or 3.6 million tonnes per year. This is nearly six times greater than any other project in the world. It also has the largest sub-sea infrastructure ever built, with more than 800 kilometres of pipelines installed.
With Australia’s large gas reserves, proximity to growing Asian energy markets, and reputation as a reliable supplier, we are well placed to capitalise on growing global demand for gas, which the International Energy Agency forecasts to increase by around 50 per cent between now and 2040.
The Government is committed to ensuring the ongoing competitiveness of energy and resources projects like Gorgon by removing $4.5 billion of red tape from the economy, opening new markets through free trade agreements, and promoting new technology and innovation to increase productivity.
Congratulations to the Gorgon LNG Project Team on this significant achievement.
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