Subscribe to RSS feedGorgon LNG gets federal green light
Federal environment minister Peter Garrett this morning approved the multi billion-dollar Gorgon liquefied natural gas (LNG) project off the north-west coast of Western Australia.
Approval: Federal environment minister Peter Garrett backs Gorgon LNG project
"I've considered it very carefully and I don't believe that there will be unacceptable impacts,'' Mr Garrett told a press conference in Canberra.
Mr Garrett's approval had been expected as a formality for the project which could generate more than
$300bn of revenue over the next 40 years.
Gorgon LNG is a joint-venture of Chevron (50%) and minor partners Shell and ExxonMobil (both 25%).
The parties had delayed final investment decision until Mr Garrett confirmed the government's support.
The WA Government gave regulatory approval two weeks ago, subject to strict emission controls and fauna protection.
PetroChina then locked in a $50bn agreement to buy 2.3m tonnes of the LNG each year in a 20-year deal.
With final investment confirmation expected soon, the project could be operational within five years.
The cost of the Gorgon LNG development — which includes three 5mtpa processing trains — could be $50bn-$65bn, although the partners believe there could be as much as $300bn of LNG extracted over the lifetime of the project.
Chevron Australia managing director Roy Krzywosinski said the resource base was more than 40trn cubic ft.
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