Chevron doubtful about fourth train for Gorgon gas project

Chevron's Chief Financial Officer has casts doubts on the fourth train expansion of the Gorgon gas project. Patricia E. Yarrington said that the cost structure is different today than it was in 2009 when the first three trains were taken to final investment decision. She said the cost structure has “elevated” and that has put at risk some of Australia’s global competitiveness.

“From a Chevron standpoint, we are going to look at Train 4 and assess it under those new conditions and look at it relative to other opportunities in our portfolio. Obviously Gorgon Train 4 has certain brownfield advantages, but we need to take those advantages, lay in the new macro-conditions that we see in Australia, and take a look at the whole portfolio activity,” she said.

For existing construction work, Gorgon is 70% complete with 14 of the 21 LNG Train 1 process modules installed, three more in transit, and the remainder scheduled to follow rapidly.