Chevron Approves $2B Gorgon Stage 3 To Boost Australian Gas Supply

Core Viewpoint - Chevron Corporation has approved the Final Investment Decision for the Gorgon Stage 3 project, which is expected to enhance gas supply and support LNG exports from Western Australia [1][5]. Project Details - The Gorgon Stage 3 project has a budget of AU$3 billion (approximately $2 billion) and will connect the Geryon and Eurytion gas fields to existing subsea infrastructure and Barrow Island processing facilities [2][3]. - This project will include the addition of three subsea manifolds, a 35-kilometre production flowline, and the drilling of six wells in waters approximately 1,300 meters deep [3]. Production Capacity - The Gorgon facility can supply up to 300 terajoules of gas per day and produce 15.6 million tonnes of LNG annually, contributing significantly to the Western Australian market [4]. Management Insights - Chevron Australia President Balaji Krishnamurthy emphasized that the project will sustain output at Gorgon, ensuring long-term domestic gas supply and supporting LNG exports to Asia [5]. - The development of the Geryon and Eurytion fields will enhance gas supply reliability and maintain thousands of skilled jobs in Australia [6]. Financial Outlook - Chevron expects an organic capital expenditure range of $18–$19 billion for consolidated subsidiaries in 2026, with upstream investments around $17 billion [6]. - Nearly $6 billion of the upstream investment will be allocated to U.S. shale and tight plays in the Permian, DJ, and Bakken basins, supporting U.S. production of over two million barrels of oil equivalent per day [7].