Chevron, partners split on timing of Gorgon LNG expansion
PERTH -- Chevron and its two major partners are split on the timing of an expansion of their $44.7 billion Gorgon LNG project, The Australian Financial Review reported citing executives from partners Exxon Mobil and Shell.
Luke Musgrave, ExxonMobil's Vice President of Australia LNG, said his company thought Chevron's plan to commence FEED, on an expansion by the end of the year was too aggressive. FEED work is early stage design work that precedes a final investment decision on a project's construction. "We probably don't see FEED work beginning at the end of this year for an expansion," Mr.Musgrave was quoted as saying.
Shell has also held back from endorsing Chevron's expansion timetable, the report said. "Shell and the other Gorgon JV participants are conducting a cost and schedule review and more will be known when that process is complete," Shell Australia Vice President of Finance and Strategy Michael Carey was quoted as saying. A Shell spokesman confirmed the quote by Mr. Carey but wouldn't comment on specifically on the planned expansion of Gorgon.
An ExxonMobil spokeswoman declined to comment on the report. A Chevron spokesman in Perth wasn't immediately available for comment. The report quoted a Chevron spokesman as saying that the partners remained committed to the development of a fourth train.
Dow Jones Newswires