Chevron, partners take FID on Gorgon backfill project

Chevron Australia, a unit of US energy giant Chevron, and its partners have taken a final investment decision to develop backfill fields to maintain natural gas supply to the giant Gorgon LNG facility on Barrow Island, Western Australia.

Chevron Australia said last year that it was embarking on a new project to develop backfill fields.

The A$3 billion ($1.95 billion) backfill development, or Gorgon Stage 3, will connect the offshore Geryon and Eurytion natural gas fields in the Greater Gorgon Area to Gorgon’s existing subsea gas gathering infrastructure and processing facilities on Barrow Island.

Launched in 2016, the Gorgon LNG plant has three trains and a production capacity of about 15.6 mtpa.

The project is a joint venture of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), MidOcean Energy (1 percent), and Jera (0.417 percent).

The first stage of Gorgon was the Gorgon foundation project (GFP), which included constructing the Gorgon gas treatment plant (GTP) and domestic gas plant on Barrow Island and developing the Gorgon and Jansz–Io offshore gas fields.

Chevron Australia president Balaji Krishnamurthy said in a statement that the new development would maintain production at Gorgon, enabling the long-term supply of domestic gas for WA households and industry, and LNG for international customers in Asia.

“Gorgon is a world-class energy asset which plays a crucial role in supporting the economic development and energy security of millions of people in Australia and across the Asia Pacific region,” Krishnamurthy said.

“With the development of the Geryon and Eurytion fields – to join the existing Gorgon and Jansz-Io fields in providing gas supply for the processing facilities – we can continue providing the reliable energy the world needs, maintaining thousands of highly skilled jobs in Australia, supporting regional WA communities and contributing to government revenue,” Krishnamurthy said.

First in a series of planned subsea tiebacks

Part of the original development plan for Gorgon, Gorgon Stage 3 is the first in a series of planned subsea tiebacks, according to Chevron.

The development involves the installation of three manifolds and a 35-kilometre production flowline among other associated infrastructure.

Six wells will be drilled in the two fields located about 100 kilometers northwest of Barrow Island in water depths of about 1300 meters.

“Gorgon Stage 3 is a cost-competitive development which will optimise existing infrastructure and complement the well-progressed Jansz-Io compression project and previously completed Gorgon Stage 2 infill development,” Krishnamurthy said.

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