PERTH (miningweekly.com) – US energy major Chevron has taken a final investment decision (FID) on the A$6-billion Jansz-Io Compression (J-IC) project at the Gorgon joint venture (JV).
Chevron Eurasia pacific exploration and production president Nigel Hearne said J-IC represents Chevron’s most significant capital investment in Australia since the sanctioning of the Gorgon Stage 2 project in 2018.
“Using world-leading subsea compression technology, J-IC is positioned to maintain gas supply from the Jansz-Io field to the three existing liquefied natural gas (LNG) trains and domestic gas plant on Barrow Island,” Hearne said.
“This will maintain an important source of clean-burning natural gas to customers that will enable energy transitions in countries across the Asia Pacific region.”
A modification of the existing Gorgon development, J-IC will involve the construction and installation of a 27 000 t normally unattended floating field control station (FCS), approximately 6 500 t of subsea compression infrastructure and a 135 km submarine power cable linked to Barrow Island.
Construction and installation activities are estimated to take approximately five years to complete.
J-IC follows the Gorgon Stage 2 project, which is nearing completion of the installation phase, to supply gas to the Gorgon plant from four new Jansz-Io and seven new Gorgon wells.
The Australian Petroleum Production and Exploration Association (Appea) on Friday said an FID on the J-IC project meant affordable, reliable and cleaner energy for customers in Western Australia and across the Asia-Pacific region for years to come.
Appea CEO Andrew McConville said Chevron and the Gorgon JV participants will use world leading subsea compression technology to enhance the recoverability of the Jansz-Io field to maintain long-term natural gas supply to the LNG and domestic gas plants on Barrow Island.
“This is great news for the Western Australian economy, Western Australian gas users, local job seekers and the environment,” McConville said.
“For the approximately A$6-billion FID to be reached shows the confidence in our industry, the hundreds of thousands of jobs we support both directly and indirectly and how we have a large role to play in a cleaner energy future.
“The announcement guarantees long-term, reliable operations, ensuring Gorgon continues to deliver vital natural gas supplies to customers in Western Australia and Asia for decades to come.”
Appea Western Australia director Claire Wilkinson said the project is expected to provide meaningful contracting opportunities for Australian businesses.
“J-IC represents the largest capital investment made by Chevron in Australia since the Gorgon Stage 2 project – currently underway – was sanctioned in 2018,” Wilkinson said.
“It’s expected there will be more than 350 jobs during the construction phase including opportunities for local engineering, onshore construction and offshore installation work, plus longer term contracting and employment opportunities in operations and maintenance.”
The Chevron-operated Gorgon project is a JV between the Australian subsidiaries of Chevron, ExxonMobil, Shell, Osaka Gas, Tokyo Gas and JERA.