Chevron Greenlights Major Investment for Gorgon Stage 3 LNG Expansion

Core Insights - Chevron Corporation and its partners have sanctioned the $2 billion Gorgon Stage 3 development, crucial for extending the life and output of one of Australia's largest LNG projects [1][8] - The Gorgon Stage 3 project aims to sustain LNG exports and enhance domestic energy security for decades [1] LNG Supply Development - Gorgon Stage 3 will connect the offshore Geryon and Eurytion gas fields to Gorgon's existing facilities on Barrow Island, involving the installation of three subsea manifolds and a 35-kilometre production flowline [2] - The project includes drilling six wells across two offshore fields located approximately 100 kilometers northwest of Barrow Island, in water depths of around 1,300 meters [2] Strategic Importance - Gorgon is one of the world's largest LNG ventures, with a three-train LNG facility capable of producing 15.6 million tons annually and a domestic gas plant supplying 300 terajoules per day [4] - The project is expected to have a lifespan of over 40 years, contributing significantly to Australia's economy by providing reliable energy [4] - The Stage 3 project will ensure continued supply to existing LNG trains and the domestic gas plant through the addition of new wells and subsea infrastructure [4] Regulatory and Ownership Structure - The Stage 3 project received regulatory acceptance in November 2024 after public consultation [5] - Gorgon is operated by Chevron (47.3%) and jointly owned by ExxonMobil (25%) and Shell (25%), with Osaka Gas, JERA, and MidOcean holding the remaining stake [5]