Boost for Western Australia as Gorgon starts supplying first customers

PERTH (miningweekly.com) – The $54-billion Gorgon liquefied natural gas (LNG) project, on Barrow Island off the coast of Western Australia, has started domestic gas supplies to the Western Australian market.

US energy major Chevron on Friday reported that an initial 150 TJ/d of gas was being supplied to foundation customer Synergy and an industry customer under long-term contracts.

“This is a significant development for domestic gas in Western Australia and we are committed to being a safe and reliable supplier of domestic gas to our customers,” said Chevron Australia MD Nigel Hearne.

Domestic gas from the Gorgon project will be transported to the mainland via a 90 km pipeline, connecting into the existing Dampier to Bunbury natural gas pipeline.

The project is the most significant entry into the Western Australian domestic gas market for almost 30 years. At full capacity and subject to market demand, Gorgon could supply up to 300 TJ/d of gas to the Western Australian market, equivalent to generating enough electricity for 2.5-million households.

The Australian Petroleum Production and Exploration Association (Appea) has welcomed the new domestic supply, saying Western Australia’s energy security has been further enhanced with the start of the project.

Appea COO for Western Australia Stedman Ellis said Gorgon was a major reason why Australia was set to become the world’s leading LNG exporter by 2020.

“Its impact on the Western Australian and Australian economies has already been enormous and is set to grow even bigger through the long-term jobs, local contracts, export income and taxation revenues it will generate over many decades.

“Gorgon’s entry into the domestic gas market marks another significant milestone in the project’s development and will ensure Western Australians continue to enjoy access to abundant supplies of cleaner-burning natural gas well into the future.”

Ellis said Western Australia’s domestic gas supply would be further boosted once Chevron began supplying gas from its Wheatstone project near Onslow.