The Rising Influence of Rising Affluence

[DewDiligence]

Chevron Makes Final Investment Decision to Construct Gorgon Natural Gas Project

[This announcement is but a formality—the certainty of a go-ahead was clear once CVX inked the recent LT supply deal.]

http://finance.yahoo.com/news/Chevron-Makes-Final-bw-1016789317.html?x=0&.v=1

›Emerges as One of the World’s Largest Natural Gas Developments

Project Will Be a Global Leader in Applying Underground Carbon Dioxide Injection Technology

Sunday September 13, 2009, 9:53 pm EDT

SAN RAMON, Calif.--(BUSINESS WIRE)--Chevron Corporation (NYSE: CVX ) today announced that its subsidiary, Chevron Australia Pty Ltd, will proceed with the development of the Gorgon natural gas project offshore Western Australia. Development proposals for the project were approved today by the Western Australian State Premier the Hon. Colin Barnett, MLA, and production licenses were granted by the Australian Minister for Resources and Energy, the Hon. Martin Ferguson AM, MP.

“With a total resource base of more than 40 trillion cubic feet of gas and an estimated economic life of at least 40 years, Gorgon will be a major contributor to our company’s future growth,” said Chevron Chairman Dave O’Reilly.

“Gorgon adds significant long-term reserves and production for Chevron, bolstering our strong resource replacement and underscoring the importance of Australia to our growing natural gas business,” said George Kirkland, executive vice president, Global Upstream and Gas, Chevron Corporation.

The Gorgon Project, operated by the Australian subsidiary of Chevron (50 percent) in joint venture with Australian subsidiaries of ExxonMobil (25 percent) and Shell (25 percent), is currently estimated to cost AU$43 billion (US$37 billion) for the first phase of development. First gas is planned for 2014.

The Greater Gorgon Area’s projected natural gas resources are equivalent to 6.7 billion barrels of oil [!]. The project’s scope includes a three-train, 15 million-metric-ton-per-year liquefied natural gas (LNG) facility and a domestic gas plant.

The project underwent a rigorous and thorough environmental assessment that culminated with some of the most stringent conditions imposed on a major project anywhere in the world. The project is expected to have the world’s largest carbon dioxide injection system and be a global leader in underground carbon dioxide injection technology.‹