Chevron' s Gorgon project cost up 40% to $52 billion
PERTH -- The estimated price tag for Chevron massive LNG project called Gorgon off the coast of Western Australia has risen by about 40% to $52 billion for the multi-year effort, Raymond James analyst Pavel Molchanov said in a note to clients. Overall, the cost increase is "by no means great" but "not as bad as what had been rumored," he said.
Chevron disclosed plans for a review of the Gorgon costs, following price hikes in the Australian resource sector. "While the 40% escalation in costs is obviously not what Chevron or the other project partners would hope for, let' s point out that the price of Tapis crude against which Gorgon LNG offtake deals are benchmarked is up 80% over the same timeframe," he said.
Dow Jones Newswires