First cargo from Chevron’s Gorgon LNG project sets sail for Japan

Chevron’s first shipment of LNG from the Gorgon project has departed Barrow Island off the northwest coast of Western Australia, the company announced on Monday. The cargo will be delivered to one of Chevron’s foundation buyers, Chubu Electric Power, for delivery into Japan.

“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 for Chevron's midstream and development business.

LNG is a growing fuel for power generation across Asia, and natural gas is among the fastest growing segments of Chevron’s energy portfolio.

Chevron says its Australian projects are well located to supply natural gas for the region, and more than 80% 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 an LNG supplier, Chevron Shipping Co. 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 Gorgon and Jansz-Io gas fields, within the Greater Gorgon area, between 80 miles and 136 miles off the northwest coast of Western Australia. It includes a 15.6-MMtpy LNG plant on Barrow Island, a carbon dioxide injection project and a domestic gas plant with the capacity to supply 300 terajoules/day of gas to Western Australia.

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

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