Gorgon project moves forward

Royal Dutch Shell plc (Shell) has taken the final investment decision on the Gorgon liquefied natural gas (LNG) project, signaling the start of initial construction.

Offshore staff

THE HAGUE -- Royal Dutch Shell plc (Shell) has taken the final investment decision on the Gorgon liquefied natural gas (LNG) project, signaling the start of initial construction. Chevron will operate the project with a 50% stake; Shell and ExxonMobil each hold 25%.

The project will include construction of an LNG facility with an annual capacity of around 15 million metric tons per year on Barrow Island, off Western Australia’s coast.

Plans call for development of the Greater Gorgon gas fields, beginning with the Gorgon and Jansz-Io gas fields with development facilities installed directly on the ocean floor in water up to 1,300 m (4,265 ft) deep. Two subsea pipelines with a combined length of 240 km (149 mi) will carry the gas to facilities on Barrow Island.

Shell has signed a long-term supply agreement with PetroChina for LNG from its share of Gorgon. During the 20-year contract term, Shell will sell up to 2 million tonnes of LNG per year to PetroChina.

09/14/2009

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