Finance
Chevron's Gorgon LNG project secures $2 billion investment nod
Published by Global Banking and Finance Review
Posted on December 5, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 5, 2025
2 min readLast updated: January 20, 2026
Chevron's Gorgon LNG project in Western Australia secures a $2 billion investment, enhancing gas supply and export capabilities.
By Helen Clark
PERTH Dec 5 (Reuters) - The Australian unit of U.S. oil giant Chevron said on Friday that the partners of the Gorgon Joint Venture have sanctioned the A$3 billion ($1.98 billion) Gorgon Stage 3 development off Western Australia's northwest coast.
The development will be used as backfill for the existing LNG export concern and will link the offshore Geryon and Eurytion natural gas fields to Gorgon's existing infrastructure on Barrow Island.
Chevron will drill a maximum of 40 wells across seven fields with a notional field life extending to 2070.
The project proposal was accepted in November by the offshore environmental regulator after being submitted for public comment by Chevron in August 2024.
The Chevron-operated Gorgon Project is a joint venture among the Australian units of Chevron, Exxon Mobil, and Shell, which collectively own roughly 97.3%, with Japan's Osaka Gas, JERA and U.S.-based firm MidOcean holding the remaining stake.
In addition to LNG exports it will enable the long-term supply of domestic gas for Western Australia households and industry, Chevron Australia president Balaji Krishnamurthy said.
The state has a mandated 15% reservation policy for domestic use for all LNG projects.
Gorgon has the capacity to produce 300 terajoules per day of gas for the Western Australia market and 15.6 million tons of LNG per year, said Chevron Australia.
Last week, Shell’s plans for drilling at the Crux field, also offshore northern Australia, were accepted by the regulator. Crux’s gas will be sent as backfill to the Prelude floating LNG vessel.
In southern Australia, U.S. oil company ConocoPhillips has just finished its first exploration well in the region and will now move to a nearby location for a second well.
($1 = 1.5135 Australian dollars)
(Reporting by Sherin Sunny in Bengaluru; Editing by Alan Barona and Thomas Derpinghaus)
LNG stands for liquefied natural gas, which is natural gas that has been cooled to a liquid state for easier storage and transport.
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity.
Backfill refers to the process of using new gas supplies to replace or supplement existing gas supplies in a pipeline or facility.
Environmental approval is a regulatory requirement that ensures a project complies with environmental laws and standards before it can proceed.
Domestic gas supply refers to the natural gas that is produced and made available for use within a specific country or region.
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