Chevron Ships First LNG From Gorgon Project

Chevron Corporation (NYSE: CVX) today announced that its first shipment of liquefied natural gas (LNGLF) (LNG) from the Gorgon Project has departed Barrow Island off the northwest coast of Western Australia. The cargo will be delivered to one of Chevron's foundation buyers, Chubu Electric Power, for delivery into Japan.

The Asia Excellence loading the first Gorgon liquefied natural gas (LNG) cargo for delivery into Japan. The first cargo highlights the company's growing leadership as an LNG supplier. (Photo: Business Wire)

"Departure of the first cargo from the Gorgon Project is a key milestone in our commitment to be a reliable LNG provider for customers across the Asia-Pacific region," said Mike Wirth, executive vice president, Chevron Midstream and Development. "This is also important for our investors as we begin to generate revenue from a project we expect will operate for decades to come."

LNG is an essential fuel for power generation across Asia and natural gas is among the fastest growing segments of Chevron's energy portfolio. Chevron's Australian projects are well located to supply natural gas for the region and more than 80 percent of Chevron's Australian subsidiaries' equity LNG from the Gorgon and Wheatstone projects is covered by sales and purchase agreements and heads of agreements with customers in the Asia-Pacific region.

The LNG cargo will be delivered by the Asia Excellence, one of Chevron's new state-of-the-art LNG carriers. To support Chevron's growing position as a leading LNG supplier, Chevron Shipping Company is in the final stages of its largest shipbuilding and fleet modernization program in recent history, which includes the addition of six new LNG carriers to its operated fleet.

The Gorgon Project is supplied from the Gorgon and Jansz-Io gas fields, located within the Greater Gorgon area, between 80 miles (130 km) and 136 miles (220 km) off the northwest coast of Western Australia. It includes a 15.6 MTPA LNG plant on Barrow Island, a carbon dioxide injection project and a domestic gas plant with the capacity to supply 300 terajoules of gas per day to Western Australia.

The Chevron-operated Gorgon Project is a joint venture between the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (OSGSF) (1.25 percent), Tokyo Gas (TOG.BE) (1 percent) and Chubu Electric Power (0.417 percent).