THE DEVELOPMENT OF GORGON AREA GAS

Abstract

Australia will increasingly need to turn to natural gas to offset declining oil production and meet an expanding global need for clean energy. The Gorgon Development Joint Venture Participants, (ChevronTexaco/Exxon- Mobil/Shell), are poised to develop the significant Gorgon gas reserves located 130 km offshore the North West Australian coast to help fulfil this need.The Gorgon Development has access to extensive proved reserves of 13.8 Tcf and a development plan that can supply gas to a Barrow Island landfall at world competitive prices. Several concepts are being considered for development of the Gorgon reserves.Technology will play a key role, with the extensive use of subsea production facilities and innovative LNG design concepts being considered.The focus is on a design that would have a low unit cost and also provide new benchmarks in safety and environmental performance. The development of the Gorgon reserves could also facilitate the establishment of other gas-based industries in Western Australia and offers the opportunity for new gas-to-liquid (GTL) plants to lead Australia’s transition to a gas-based economy.The Gorgon Development is expected to attract nearly A$4 billion investment for an LNG development and a further A$2 billion for a major industrial gas consumer. Total export income could reach A$2,500 million per year for 30 years.