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New natural gas find in Australia—Chevron


Agence France-Presse
First Posted 10:21:00 10/19/2009

Filed Under: Oil & Gas - Upstream activities, Energy

SYDNEY – Energy group Chevron Monday announced a new natural gas discovery off Western Australia that will help support the massive Gorgon liquefied natural gas (LNG) project.

Chevron, Shell, and ExxonMobil last month agreed to develop the Gorgon field, spending some 43 billion Australian dollars (39.25 billion US) in the initial construction phase of the country's largest-ever resources development.

The energy giant said gas was found in about 100 meters (330 feet) of the 4,500 meters drilled in the Achilles-1 exploration well which lies about 160 kilometers (100 miles) offshore.

"The success of our drilling program will provide additional natural gas to underpin the Gorgon and Wheatstone projects," Chevron Australia managing director Roy Krzywosinski said in a statement.

The Gorgon project, expected to begin production in 2014, is designed to be an important source of energy for Asia's burgeoning economies.

It is already supported by supply contracts with China, Japan, India and South Korea worth a combined (AUS)$145 billion.

Chevron owns a 50 percent stake in Gorgon and will operate the plant, with ExxonMobil and Shell each holding 25 percent.



Copyright 2010 Agence France-Presse. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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