Chevron Australia and its joint venture partners have approved a $3 billion investment to extend the operational life of the Gorgon liquefied natural gas (LNG) project off Western Australia’s Pilbara coast through its Stage 3 expansion.
This decision targets new gas fields to backfill depleting reservoirs, sustaining the facility’s 15.6 million-tonne annual production capacity and supporting both domestic supply and exports to Asia.
Located on Barrow Island, the Gorgon project represents Western Australia’s largest resources development, originally built at a cost of US$54 billion (approximately $80 billion) with first LNG cargoes shipped nearly a decade ago.
The joint venture comprises Chevron Australia (47.3%), ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), Tokyo Gas (1%), and JERA (0.417%).
Designed for a nominal 50-year life, it processes gas from the Greater Gorgon fields via subsea infrastructure, supplying around half of WA’s domestic gas needs at 530 terajoules per day alongside Chevron’s Wheatstone project.
The expansion promises an economic boost, creating 800 construction jobs with about half the investment spent locally on subsea installations, rig work, and manufacturing.
Henderson-based Civmec has previously secured fabrication contracts for related Chevron projects, highlighting local industry involvement.
LNG exports generated $36 billion last year, comprising 8 per cent of WA’s income and ranking as the state’s second-largest industry.
Stage 3 involves drilling six offshore wells, expected to complete by early 2030, tying into existing pipelines and plants with potential modifications for off-the-shelf designs.
Chevron Australia President Balaji Krishnamurthy emphasised Australia’s vast gas reserves, stating these backfill investments maintain domestic capacity and Asian supply reliability.
Krishnamurthy said the development would maintain production at Gorgon, enabling the long-term supply of domestic gas for WA households and industry, and liquefied natural gas (LNG) for international customers in Asia.
“Gorgon is a world-class energy asset which plays a crucial role in supporting the economic development and energy security of millions of people in Australia and across the Asia Pacific region,” Krishnamurthy said.
“With the development of the Geryon and Eurytion fields – to join the existing Gorgon and Jansz-Io fields in providing gas supply for the processing facilities – we can continue providing the reliable energy the world needs, maintaining thousands of highly skilled jobs in Australia, supporting regional WA communities and contributing to government revenue.”
Recent activities include environmental plans for umbilicals and power supplies in Commonwealth waters.
Despite global competitiveness, Krishnamurthy noted Australia’s higher costs from long supply chains and called for faster approvals, criticising the exclusion of gas from federal fast-track reforms.
The project features the world’s largest carbon capture and storage system, targeting 3.5 million tonnes of CO2 annually, though past delays have drawn scrutiny.
This move aligns with Gorgon’s Stage 2 first gas milestone, reinforcing energy security amid regional demand.