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*Mobil Australia Resources (a subsidiary of [[Exxon Mobil]]) (25%)
*Mobil Australia Resources (a subsidiary of [[Exxon Mobil]]) (25%)


=== Scope === [http://www.theaustralian.news.com.au/story/0,25197,26072759-643,00.html]

* 300 ha of land has been acquired on [[Barrow Island]]
* 3 LNG Trains
* 15 million tonnes of LNG per year
* Production begins in 2014


Using initially 18 wells, gas will be extracted from the Gorgon and Jansz-Io fields and delivered via subsea gathering systems and pipelines to the north-west coast of Barrow Island, then via an underground pipeline system to gas treatment and liquefaction facilities on the island's south-east coast. The plant will consist of 3 liquefied natural gas (LNG) trains, each capable of producing a nominal capacity of five million tonnes per annum (MTPA).<ref name="gorgonEIS"/>
Using initially 18 wells, gas will be extracted from the Gorgon and Jansz-Io fields and delivered via subsea gathering systems and pipelines to the north-west coast of Barrow Island, then via an underground pipeline system to gas treatment and liquefaction facilities on the island's south-east coast. The plant will consist of 3 liquefied natural gas (LNG) trains, each capable of producing a nominal capacity of five million tonnes per annum (MTPA).<ref name="gorgonEIS"/>
Line 63: Line 69:
*A$33 billion of expenditure on locally purchased goods and services
*A$33 billion of expenditure on locally purchased goods and services
*additional government revenue of about A$40 billion (in 2009 dollars)<ref name="gorgonPER"/>
*additional government revenue of about A$40 billion (in 2009 dollars)<ref name="gorgonPER"/>



==Gas sales==
==Gas sales==

Revision as of 18:53, 14 September 2009

Gorgon Gas Project
IndustryEnergy
HeadquartersPerth, Australia[1]
ProductsLiquid natural gas
OwnerChevron Corporation (50%) [2]

ExxonMobil (25%)

Royal Dutch Shell (25%)
Location of some of the Greater Gorgon gas fields in relation to Barrow Island and the adjacent coastline

The Gorgon gas project is a proposed petroleum project in Western Australia, involving the development of the Greater Gorgon gas fields, subsea gas-gathering infrastructure, and a liquefied natural gas (LNG) plant on Barrow Island.[3][4] If it proceeds on schedule, it will become Australia's third LNG export development.[5]

Location

'Greater Gorgon' refers to a grouping of several gas fields, including Gorgon, Chandon, Geryon, Orthrus, Maenad, Eurytion, Urania, Chrysaor, Dionysus, Jansz/Io, and West Tryal Rocks, situated in the Barrow sub-basin of the Carnarvon Basin) - an area commonly referred to as the North West Shelf. The Gorgon field is centered about 130 kilometres (81 mi) off the north-west coast of Western Australia, where the water depth is approximately 200 metres (660 ft). Other fields in the group lie to the north, such as Jansz-Io, which covers an area of 2,000 square kilometres (770 sq mi), in a water depth of 1,300 metres (4,300 ft).

Barrow Island lies off the Pilbara coast, 85 kilometres (53 mi) north-north-east of Onslow and 140 kilometres (90 mi) west of Karratha. The largest of a group of islands which include the Montebello and Lowendal Islands, it is 25 kilometres (16 mi) long and 10 kilometres (6.2 mi) wide, covering 235 square kilometres (91 sq mi).[3]

History

More than 200 exploration wells have been drilled in the Barrow sub-basin over the past 35 years, including West Tryal Rocks in 1972, and Spar in 1976 - both discovered by West Australian Petroleum (WAPET) which had been a pioneering company in the development of the Western Australian petroleum industry. WAPET was the operator on behalf of various joint ventures comprising Chevron, Texaco, Shell and Ampolex (the exploration division of Ampol). Chevron and Texaco merged in 2001, Mobil took over Ampolex, and later merged with Exxon to form Exxon-Mobil. In 2000, Chevron became the operator of all WAPET's petroleum assets.

WAPET discovered Gorgon in 1981 with the drilling of the Gorgon 1 well.[6] Later discoveries included Chrysaor (1994) and Dionysus (1996). The Jansz-Io gas accumulation, discovered in January 2000, contains an estimated 566 billion cubic meters of recoverable reserves.[6]

The project received preliminary environmental approvals from the West Australian government in September 2007 and from the Federal Minister for the Environment in the following month.[7][8] The project developers then submitted revised plans to cover an expansion in the size of the project. Final environmental approval was received from the state government on 11 August 2009.[9] On 26 August 2009, the Federal Environment Minister announced that the expanded project on Barrow Island had been given conditional environmental approval.[10]

Gorgon Gas Fields

The gas fields, 200km from the coast are said to contain 40 trillion cubic feet of natural gas and may have a lifespan of 60 years.[11]

The gas is worth A$500 billion at current market prices [1] and the market price will keep increasing over the next few years.

The Project

Developers

The project is being developed by the Gorgon Joint Venture, which consists of Australian subsidiaries of three international energy companies:[12]

  • Chevron Australia (a subsidiary of Chevron) (50% share and project operator)
  • Shell Development Australia (a subsidiary of Royal Dutch Shell) (25%)
  • Mobil Australia Resources (a subsidiary of Exxon Mobil) (25%)

=== Scope === [2]

  • 300 ha of land has been acquired on Barrow Island
  • 3 LNG Trains
  • 15 million tonnes of LNG per year
  • Production begins in 2014

Using initially 18 wells, gas will be extracted from the Gorgon and Jansz-Io fields and delivered via subsea gathering systems and pipelines to the north-west coast of Barrow Island, then via an underground pipeline system to gas treatment and liquefaction facilities on the island's south-east coast. The plant will consist of 3 liquefied natural gas (LNG) trains, each capable of producing a nominal capacity of five million tonnes per annum (MTPA).[3]

Carbon dioxide (CO2), which comprises around 15% of the raw gas stream, will be stripped out then injected into formations deep below the island. LNG and condensate, initially stored in onshore tanks, will be offloaded from a 2100m jetty onto LNG carriers and oil tankers, for delivery to overseas customers. In a later phase of the project, natural gas for domestic use will be exported by a 70 km subsea pipeline to the mainland, for transmission to local customers.[3]

Although capital costs of major energy projects are generally not revealed by developers, media articles have reported analyst forecasts of estimated costs ranging from A$11 billion (in 2003), A$16 billion (2007)[13], and A$50bn in March 2009 [14] to A$43b in Sept 2009. [3]

Benefits

Economic modelling carried out in 2008 as part of the environmental impact assessment process, forecast the following macroeconomic impacts (based on a 30-year period):

  • 6000 jobs in Western Australia at the peak of the construction phase
  • more than 3500 direct and indirect jobs sustaining throughout the life of the project
  • an increase in national Gross Domestic Product (GDP) of A$64.3 billion (in net present value terms)
  • A$33 billion of expenditure on locally purchased goods and services
  • additional government revenue of about A$40 billion (in 2009 dollars)[15]

Gas sales

LNG export agreements

Approximately A$200 billion in LNG sales agreements (out of an expected total of A$300b) have been reached between the joint venturers and customers in China, India, Japan and South Korea.[14] PetroChina has agreed with Shell to buy 1 million tonnes of LNG per annum.[16]Osaka Gas will buy 1.5 million tonnes of liquefied natural gas per annum and Korea's GS Caltex will buy 0.25  million tonnes of liquefied natural gas per annum from Chevron.[17][18]

An agreement was signed in Perth on 10 August 2009 with Petronet LNG to supply 1.5 million tonnes of LNG per annum for 20 years to the Kochi LNG Terminal, India for A$25 billion (U$21b).[19][20]

Another significant milestone was reached in Beijing in 18 August 2009 with the signing of a sales and purchase agreement (SPA) between ExxonMobil and PetroChina. The contract is the largest individual export deal in Australia's history, and provides for the supply of 2.25 MTPA of LNG for 20 years for A$50 billion (U$41.1b) starting 2014-2015.[14][21][22]

On September 10, Chevron signed a binding agreement to supply Osaka Gas with 1.375 MTPA of LNG for 25 years, starting 2014. [4]

Domestic gas

Under the provisions of the Barrow Island Act (2003), the joint venturers are required to reserve 2000 petajoules of gas for delivery into the domestic market. They are required to submit proposals to the state government by December 2010, for the establishment of a domestic gas project by December 2012, including plans for progressive expansion to enable delivery of at least 300 terajoules of gas per day into the domestic transmission system.[23] [24] Chevron have indicated that deliveries of Gorgon domestic gas will commence around the time of start-up of the third LNG train.[25]

The Gorgon Gas Project is one of 12 proposed LNG projects in Australia and Papua New Guinea, and Australia could be the worlds biggest supplier of LNG in 10 years according to an expert at ConocoPhillips. [5]

Currently, Australia is ranked 6th in LNG exports, while Qatar is ranked 1st according to BP's 2009 energy review report. [6]

Criticisms

The proposed project has attracted criticism from conservation groups in relation to the potential impact upon Barrow Island's ecology. The island is a Class A nature reserve, and home to the flatback turtle (classified as a vulnerable species[26]) and numerous other animals not found on the Australian mainland.[15][27] Other concerns are related to the adequacy of quarantine procedures on Barrow Island to protect against the introduction of non-endemic species,[28] and risks associated with geological sequestration of CO2. The responses of some federal ministers to the execution of sales agreements in August 2009, prior to federal environmental approval, gave rise to concerns about the authenticity of the environmental assessment process. [29]

See also

References

  1. ^ Gorgon Official Site
  2. ^ Bloomberg - Sep 11 - Ownership info
  3. ^ a b c d "Gorgon EIS 2009-Response to Submissions" (PDF). Chevron Australia. Retrieved 2009-08-20.
  4. ^ "Gorgon, Northern Carnarvon Basin". Offshore-technology.com. SPG Media Limited. Retrieved 2008-06-16.
  5. ^ "Energy in Australia 2009" (PDF). Australian Bureau of Agricultural and Resource Economics. Retrieved 2009-08-20. {{cite journal}}: Cite journal requires |journal= (help)
  6. ^ a b "Offshore Acreage Release 2008:Exploration History". Department of Resources, Energy and Tourism. Retrieved 2009-08-20. {{cite web}}: Cite has empty unknown parameter: |1= (help)
  7. ^ "Chevron gets Gorgon green light". Upstream Online. 2007-09-07. Retrieved 2008-07-18.
  8. ^ "Chevron gets Gorgon green light". Upstream Online. 2007-10-27. Retrieved 2008-07-18.
  9. ^ "Final State environmental approval for Gorgon development". Government of Western Australia. Retrieved 2009-08-20.
  10. ^ "Gorgon Expansion" (PDF). Federal Minister for the Environment, Heritage and the Arts. Retrieved 2009-08-26.
  11. ^ "Exxon to Ship Gorgon LNG to PetroChina From 2014-15". Bloomberg. 20 August 2009. Retrieved 2009=09-14. {{cite news}}: Check date values in: |accessdate= (help)
  12. ^ "Project Overview" (PDF). Chevron Australia. Retrieved 2009-08-20. {{cite journal}}: Cite has empty unknown parameter: |1= (help); Cite journal requires |journal= (help)
  13. ^ "Shell inks Gorgon LNG deal with PetroChina". Sydney Morning Herald. Retrieved 2009-08-27.
  14. ^ a b c "Australia signs $50bn gas deal with China". The Australian. Retrieved 2009-08-20. {{cite web}}: Cite has empty unknown parameter: |1= (help)
  15. ^ a b "Gorgon-Revised Public Environmental Review" (PDF). Chevron Australia. Retrieved 2009-08-20.
  16. ^ "Shell and PetroChina sign Gorgon deal". Upstream Online. 2007-09-04. Retrieved 2008-07-18.
  17. ^ "Osaka Gas seals Gorgon deal". Upstream Online. 2005-12-08. Retrieved 2008-07-18.
  18. ^ "Chevron seals new Gorgon LNG deal". Upstream Online. 2007-05-03. Retrieved 2008-07-18.
  19. ^ "Gorgon LNG Supply Agreement". Petronet LNG. Retrieved 2009-08-20.
  20. ^ "Exxonmobil signs S$30b deal". The Straits Times. Retrieved 2009-08-20.
  21. ^ "Australia signs $50b gas deal with China". ABC News online. Australian Broadcasting Corporation. 2009-08-18. Retrieved 2009-08-18.
  22. ^ "Exxon, China sign $41 billion Australian gas deal". Reuters. Retrieved 2009-08-20. {{cite web}}: Text "U.S." ignored (help)
  23. ^ "Domestic Gas" (PDF). Chevron Australia. Retrieved 2009-08-20. {{cite web}}: Cite has empty unknown parameter: |1= (help)
  24. ^ "Barrow Island Act 2003" (PDF). Parliament of Western Australia. Retrieved 2009-08-20. {{cite web}}: Cite has empty unknown parameter: |1= (help)
  25. ^ "Project Newsletter Oct08" (PDF). Chevron Australia. Retrieved 2009-08-29.
  26. ^ "Current Threatened and Priority Fauna Rankings February 2009". Department of Environment and Conservation. Retrieved 29 August 2009.
  27. ^ "Barrow pipeline adds to protesters woes". Upstream Online. 2007-12-11. Retrieved 2008-07-18.
  28. ^ "Gorgon gas project 'environmental vandalism'". Australian Broadcasting Corporation. Retrieved 2009-08-27.
  29. ^ "Gorgon gas project gets green go-ahead". Australian Broadcasting Corporation. Retrieved 2009-08-27.

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