Chevron to be one of the largest LNG providers by 2020

Chevron to be one of the largest LNG providers by 2020

Chevron Corporation (NYSE: CVX) announced yesterday that it began producing liquefied natural gas (LNG) and condensate at the Gorgon Project on Barrow Island off the coast of Western Australia.

The first LNG freight is positioned to be shipped next week.

Chairman and CEO John Watson said, “We expect legacy assets such as Gorgon will drive long-term growth and create shareholder value for decades to come.”

“The long-term fundamentals for LNG are attractive, particularly in the Asia-Pacific region, and this is a significant milestone for all involved.”

The company is expected to be one of the largest LNG suppliers by 2020. According to the statement, Chevron’s Australian projects are well-situated to meet energy demands in the Asia-Pacific region.

More than 80 per cent of Chevron’s Australian subsidiaries’ equity LNG from the Gorgon and Wheatstone projects is insured by sales and purchase compliances and heads of agreements with customers in the area.

The Gorgon Project is provided from the Gorgon and Jansz-lo gas fields, placed between the Greater Gorgon area, between 130-220 kilometres off the northwest coast of Western Australia.

The project is a joint venture between subsidiaries of Chevron, ExxonMobil, Shell, Osaka Gas, Tokyo Gas and Chubu Electric Power.