Gorgon could get 50% bigger: report

THE Gorgon joint venture is reportedly looking at boosting capacity at the $15 billion liquefied natural gas project by 50% in a bid to lower production costs.
Gorgon could get 50% bigger: report Gorgon could get 50% bigger: report Gorgon could get 50% bigger: report Gorgon could get 50% bigger: report Gorgon could get 50% bigger: report

A Bloomberg report has cited two unnamed executives from operator Chevron as saying the JV may decide to build two trains, each capable of producing 7.5 million tonnes (MMt) of LNG per year, instead of the proposed 5MMt.

Doubts over the viability of Gorgon grew towards the end of last year, after it was revealed the project was experiencing cost blow-outs of up to $3 billion.

As a result, Chevron, which holds a 50% stake in the project, announced it was undertaking a study to try and offset these additional costs.

ExxonMobil and Shell each own 25% in the JV.

loader