ChevronTexaco to bring LNG from Australia's Gorgon gas field to North America

ChevronTexaco Corp. affiliate has signed a memorandum of understanding (MOU) with the Gorgon joint venture (JV) in Australia for the supply of LNG for distribution to markets on the West Coast of North America.

ChevronTexaco Corp. affiliate has signed a memorandum of understanding (MOU) with the Gorgon joint venture (JV) in Australia for the supply of LNG for distribution to markets on the West Coast of North America.

Under terms of the MOU, a ChevronTexaco affiliate will enter into negotiations, the details of which are confidential, with the Gorgon JV, which could lead to the supply of at least 2 million metric tons of LNG annually over a 20-yr period, beginning in 2008.

The Gorgon gas field, offshore Western Australia, has certified proven hydrocarbon reserves of 12.9 Tcf, with total natural gas resources in the Greater Gorgon Area exceeding 40 Tcf. The Gorgon JV participants include operator ChevronTexaco with 57% interest, Shell 29%, and ExxonMobil 14%.

"Growing North American demand for natural gas is widely projected to outstrip supply capabilities," said John Gass, president of ChevronTexaco Global Gas, which coordinates the company's worldwide natural gas businesses. "The Gorgon joint venture is well positioned to help satisfy natural gas demand in both the West Coast of the United States and Mexico."

ChevronTexaco is seeking approvals to permit the construction and operation of an LNG terminal and regasification facility offshore Baja California, which would be capable of receiving Gorgon LNG.

Separately, ChevronTexaco is engaged in permitting another LNG import terminal facility offshore Louisiana in the Gulf of Mexico, and is evaluating additional sites suitable for the importation of LNG to North America.

08/05/03

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