The Gorgon LNG project is one of the largest LNG facility projects in Western Australia. Developed by a consortium of top oil and gas companies in the world, the USD 35 billion project was completed in 2016 and started operations the same year.

The energy plant is currently undergoing a USD 5.1 billion expansion, which will boost its domestic gas supply from 200 to 300 terajoules per day (Tj/d).

Project Background

Western Australian Petroleum (WAPET) discovered the Gorgon project in 1980. In 1999, Chevron Australia took over the administration of the area's oil and gas development. In April 2009, the Western Australian government gave permission for the LNG plant to develop. In September 2009, the final investment agreement for the project was signed. In December of that same year, the first stone was pushed into the ground to start building.

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A non-binding head of agreement (HoA) was signed by Chevron Australia and ENN LNG Trading Company in January 2016. It was done for the supply of LNG to China. Two trains at the Gorgon gas project were put into service in March 2016. In March 2017, the third LNG train began producing LNG. In December 2016, the plant began supplying gas to homes through its pipeline. In April 2018, Chevron and its joint venture partners announced plans to expand the current LNG plant.

Location Details

The LNG project has been built on a part of Barrow Island. Barrow Island is 31 miles northwest of Western Australia's coast. As of 1910, Barrow Island was designated a Class A Nature Reserve. It is an important protection estate on a global scale. It is also Australia's biggest oilfield that is operated from land.

The Gorgon Project takes up 408 acres of land. In September 2007, the WA Government got preliminary environmental approvals for the project. In August 2009, they got the final clearance.

Project scope

The Gorgon LNG project is part of a larger project called the Gorgon Gas Project. The gas processing facilities constructed on Barrow Island comprise an LNG plant, condensate handling facilities, CO2 injection facilities, and associated utilities. The plant also has a domestic gas plant that can produce up to 300 TJ per day.

The LNG plant consists of three LNG trains, each having a capacity of 5.2 MTPA. It is capable of producing 20,000 barrels of condensate per day and includes a 275mmscf/d domestic gas plant, two LNG tanks with a capacity of 180,000m3, and 4 condensate tanks having a storage capacity of 38,000 cubic meters. Other facilities at the plant include the following, 

• 9 CO2 injection facilities to lower emissions
• 3 CO2 compressor trains
• 51 equipment-based modules
• 3 amine absorber towers that weigh 1,100t each
• 236 pre-assembled rack modules
• 5 gas turbine generators that can each produce 118MW
• 10 LNG and condensate loading arms that are set up on a 2.1km jetty
• 13 subsea production trees
• 2 eight-slot manifolds
• 13 MS-700 SFX fatigue-resistant wellheads
• 16 Sem2K control systems
• Unique connectors and pipes.

LNG plant's underwater equipment is connected by 195 km of subsea umbilicals. These cables bring in water and electricity, as well as fiber optic data and chemicals.All train components are prefabricated and built off-site to lessen the island's environmental impact. The mainland receives LNG via a 44-mile subsea pipeline. About 15% of the raw gas stream, carbon dioxide, is recovered and injected supercritical beneath the island at over 2,000m. The expansion project seeks to sustain 15.6MTPA of total natural gas supply and 275mmscf/d of LNG facility domestic gas. 

Project Cost

The plant’s expected cost was estimated at USD 37 billion when it was launched in 2009. Then it was raised to USD 52 billion in the year 2012.  Finally, the project was completed with an investment of USD 54 billion. This project is a joint venture between various companies. The project is operated by Chevron Australia, which owns about 47.3% of it. Shell Development Australia and ExxonMobil Australia Resources each own a 25% stake. Osaka Gas has a 1.25% stake in the project, Tokyo Gas has 1%, and Chubu Electric Power has 0.417 percent.

Chevron Australia has made a deal with some of the biggest LNG buyers to send liquefied natural gas (LNG) from the Gorgon Project.  Some of the parties are,

• SK LNG Trading (4.15 MT)
• Osaka Gas (1.375 MTPA)
• Tokyo Gas (1.1 MTPA)
• JERA (1.44 MTPA)
• Kyushu Electric (0.3 MTPA)
• JX Nippon Oil and Energy (0.3 MTPA)
• GS Caltex of South Korea (0.25 MTPA)

Contractors Involved

GUJV (Gorgon Upstream Joint Venture) - a joint venture of Wood Group and Technip Oceania was awarded FEED (front-end engineering and design) and the EPCM (engineering, procurement, and construction management) contract for offshore development

KJVG (Kellogg Joint Venture Group), JV between KBR, JGC, Clough, and Hatch - EPCM contract for LNG Facility

Hyundai Heavy Industries - for supply of liquefaction train modules

CB&I Kentz JV - for the mechanical, electrical, and instrumentation work for the natural gas processing facility

General Electric - for the supply of subsea trees, pipeline end terminations (PLETs), subsea wellhead systems, and other associated systems surrounding the production control system.

Aker Solution - for the supply of Steel tube umbilicals and MEG (monoethylene glycol) system

Benefits of the Project

Here are some of the benefits associated with this project,

Economic benefits

Du4ing construction, the project invested more than AUD 60.96 billion in Australian goods and services. It granted over 700 contracts to Australian firms. It also resulted in the creation of over 10,000 jobs.

Environmental impact 

The Gorgon carbon dioxide injection project aims to reduce 40% of greenhouse gas emissions. Carbon dioxide is extracted from natural sources before gas processing. 

Domestic gas sales

Gorgon provides WA with gas and energy. WA clients (industry and government) have signed long-term contracts for daily volumes from the first phase (150 terajoules).

Conclusion 

In conclusion, the Chevron Gorgon Project in Australia represents a historic achievement in natural gas and renewable energy. With an investment of AUD 54 billion, it is one of the world's largest natural gas projects. Completed in March 2016, the project has improved Australia's energy infrastructure. It has also stimulated economic growth by creating thousands of jobs and investing heavily in Australian goods and services. 

Furthermore, its ingenious carbon dioxide injection program demonstrates its devotion to environmental sustainability. The project continues to address Western Australia's energy demands through long-term contracts and domestic gas sales. It marks itself as an important milestone in Australia's energy environment.

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