NEWS
BP discussing stake in Gorgon LNG project
Sydney, Sept 5 (LNG journal)
- UK oil major BP is negotiating a stake in part of Chevron Corp's proposed US$8.5 billion Gorgon liquefied natural gas project off Western Australia.
The Gorgon development moved into the Front End Engineering and Design (FEED) phase on July 1 and contracts for the downstream and upstream activities worth a total of more than $100 million will be awarded during the next 12 months.
The development is currently a joint venture between Australian subsidiaries of Chevron (50 percent), Shell (25 percent) and ExxonMobil (25 percent).
BP is seeking a share in the unitization of the project because it has a 12.7 percent stake in an exploration area, which covers part of one gas field that would supply the Gorgon LNG production plant, according BP officials. BP would also like the so-called GOM fields nearby to be linked in.
The downstream contract includes an LNG liquefaction plant on Barrow Island, with two trains of an initial 10 million metric tonnes capacity per annum. Barrow Island lies directly between the Greater Gorgon gas fields and the Western Australian mainland.
LNG from the Gorgon project is expected to be exported to the US West Coast, as well as China , Japan and South Korea .
