Gorgon gas project

The Gorgon gas project, also called Great Gorgon will supply about 8 % of the global amount of liquefied gas in 2014 and is currently the largest project to promote LPG. The eleven gas fields are located 200 km from the coast in Western Australia. Is set up an offshore system of pipelines and large industrial gas production plants and three gas liquefaction ( LNG trains english ) in the area of ​​Barrow Island, in order to produce liquefied natural gas ( LNG) mainly for export to Asia.

The project, which is built in an environment of high vulnerability, is to tap into one of the largest natural gas reserves in the world economy, while it is dominated by Australian subsidiaries of three major international oil companies that hold the majority of project 97%. When it is completed, it will be one of the four major gas reserves for export of LNG in Australia. At the beginning of the design phase it was assumed that a sufficient amount of gas for 30 years and later of 40 years. The project leader Chevron was in August 2010 that could be expected in a further term of 20 years and that it was necessary to build additional LNG trains.

The Gorgon gas project is often compared with the Snowy Mountains Hydro - system, a longtime project for energy security with great technical and financial challenges, in which about 100,000 people were employed, especially foreigners who shaped today's multicultural society of Australia.

Location

The Greater Gorgon gas field includes several gas fields, including the Gorgon, Chandon, Geryon, Orthrus, Maenad, Eurytion, Urania, Chrysaor, Dionysus, Jansz / Io field and the West Tryal Rocks, in the Barrow sub - basin of Carnarvonbeckens lie, a sedimentary basin. The Gorgon gas field is the closest of the other gas fields, located about 130 km from the northwest coast of Western Australia, located in a water depth of 200 m. Other gas fields belonging to the Gorgon group lie to the north, such as the Jansz - Io gas field, the square covers an area of 200 km at a water depth of 1300 m.

The Barrow Island is 25 km long and 10 km wide with an area of 235 km ². It lies about 50 km off the coast of the Pilbara region, 85 km north-east of Onslow and 140 km west of Karratha. It is the largest island in the area, including the Montebello Islands and the Lowendal Archipelago.

History

More than 200 exploration wells have been drilled in the Gorgon gas fields within the last 35 years in geological Barrow sub - basin, including West Tryal Rocks in 1972 and savings in 1976. The last two areas explored the West Australian Petroleum ( WAPET ), a pioneer society in the Western Australian oil and gas industry. WAPET was the Society for the exploration of deposits, the various explorations on behalf of Chevron, Texaco, Shell and Ampolex performed (a division of the exploration of deposits of Australian Ampol ).

Chevron and Texaco merged in 2001, Mobil took over Ampolex and later merged with Exxon Mobil for ExxonMobil. In 2000, Chevron took over the Australian WAPET.

WAPET discovered the Gorgon gas field in the year 1981 as the Gorgon 1 source pierced. However, natural gas deposits were only economically viable after the gas liquefaction with large-scale industrial LNG trains was technically developed. Later discovered WAPET the Chrysaor ( 1994) and the Dionysusgasfeld (1996). The Jansz - Io gas accumulation was discovered in January 2000, of which it is assumed that this gas field allows the exploitation of 566 billion cubic meters.

The Gorgon and Jansz - Io gas fields will contain a total of 1.13 trillion cubic meters of natural gas and can be exploited for 60 years.

Environmental regulations

The project was preliminary environmental regulations by the Government of Western Australia in September 2007 and imposed further on it by the Australian Environment Minister in the month. The project developer then beat in a revised plan a change in the size of the project before; recent environmental regulations, the project received on August 11, 2009. The expanded project was released by environmental regulations on 26 August 2009 by the Federal Minister.

Investments and majorities

Australian companies are involved in the Gorgon gas project as branches of international oil companies with a majority of 97 %:

• Chevron Australia, a subsidiary of Chevron (47% proportion and project leader )
• Shell Development Australia, a subsidiary of Royal Dutch Shell (25 % share)
• Mobil Australia Resources, a subsidiary of Exxon Mobil ( 25 % share)
• Osaka Gas, Japan ( 1.25 % share)
• Tōkyō gas, Japan ( 1 % interest)
• Kyushu Electric Power Company, Japan ( 0.417 % share)

Measures

According to press 300 hectares of land will be affected on the Barrow Island from the measure. The construction work was started on 1 December 2009 and the first LNG will be available in 2010. The gas production was projected at 30 years, then you went on a sufficient amount of gas for 40 years and in recent publications credited Chevron with another 20 years until the gas reserves is exhausted.

The gas sources are connected by subsea pipelines to the north-west coast of Barrow Island. From there, the gas is passed to an underground pipeline system to systems of gas processing and liquefaction on the southeast coast of the island. The factory system is to consist of three gas liquefaction plants, each with an annual capacity of 5 million tonnes of LNG. The construction of an LNG train generates about A $ 10 billion cost.

The resulting gas liquefaction carbon dioxide ( CO2) is 12-15%. It is to be stored in geological formations beneath the island. On the other hand in the use of liquefied gas to produce electrical energy is about 60% less carbon dioxide than other processes is released.

LNG and natural gas condensates are initially stored in tanks on land to be loaded on a 2,100 m long jetty on LNG tankers for delivery to overseas. Natural gas for Australia is pumped via a 70 km subsea pipeline to the mainland.

Costs and economic

Although the costs of the project were not disclosed by the project development, estimates have been published by analysts in the press. According to estimates, the total cost of the project in 2003 amounted to AUD $ 11 billion in 2007 to A $ 16 billion to A $ 50 billion in March 2009 to AUD $ 43 billion in September 2009.

Economic considerations, which were developed as part of the impact on the environment in 2009 and published, assume that in a 30 - year period, 6,000 jobs in the construction phase arise and about 3000 in the course of the project long term stock will have. In recent publications, it is assumed that 10,000 jobs and 3,500 permanent jobs. The impact of the project on the Australian GDP were in the next 30 years, based on current numerical values ​​, calculated with an increase of AUD $ 64.3 billion. A calculated output of AU $ 33 billion will flow to the local region in the form of goods and services and the tax revenues of the state are to be AUD $ 40 billion in 30 - year period.

Gas Sales

For the Gorgon gas project until August 2010 long-term contracts in the amount of approximately AUD $ 200 billion has been completed.

Gas export

Negotiations to sell the sales volume of LNG were with companies with the participation of government agencies in China, India, Indonesia, Japan and South Korea instead.

Chevron Australia concluded contracts for gas supply volumes with companies from Japan and South Korea with the following companies from:

• Osaka Gas, Japan: 1.375 million tonnes per year for 25 years
• Tōkyō gas, Japan: 1.1 million tonnes per year for 25 years
• Chubu Electric Power, Japan: 1.44 million tonnes per year for 25 years
• GS Caltex, South Korea: 0.5 million tonnes per year for 20 years
• Korea Gas Corporation ( KOGAS ): 1.5 million tonnes per year for 15 years
• Nippon Oil Corporation, Japan: 0.3 million tonnes per year over 15 years
• Kyushu Electric Power Company, Japan: 0.3 million tonnes per year over 15 years

Shell concluded long-term contracts with companies from India, Indonesia and Mexico, as with PetroChina International Company Limited and BP Singapore Pte. Limited and time agreed LNG supplies to the Energia Costa Azul in Baja California ( Mexico) and the Hazira in Gujarat (India).

An Australian subsidiary of ExxonMobil signed long- term supply agreements with companies from India and China, as the Petronet LNG Limited of India about 1.5 million tonnes per year for a term of 20 years and with PetroChina International Company Limited 2.25 million tonnes per year for 20 years and received additional contractual assurances of volumes of gas from the Gorgon Project.

Gas deliveries to Australia

The statutory provisions of the Barrow Iceland Act (2003) which has Gorgonprojekt assure to deliver 2000 petajoules of gas to the Australian market. The Gorgonprojekt is planning a national gas project, which provides for the continuous expansion of domestic gas supplies to 300 Terajoule. Chevron pointed out that the supply of australienen gas market makes the installation of a third LG trains required.

Flora and Fauna

In the field of gas production, there is a coherent large protected area with the Montebello Islands Marine Park with 58 331 ha, the Barrow Iceland Marine Parkmit 4169 ha and the Barrow Iceland Marine Management Area with 114 693 ha

On the Monte Bello Islands, the first British-Australian nuclear explosion took place in 1952.

The Barrow Island is a spinifex grasslands with numerous termite mounds. There, the wallaroo, glasses hare kangaroo, brush kangaroo, Golden Bandicoot and Barrow Island Mouse live. An endemic bird, Malurus leucopterus edouardi, a subspecies of the White-winged squadron tail and osprey occur. The limestone basins and hollows formed the conditions for the development edemischer freshwater fish such as the Blind Gudgeon, troglobiote and amphibian species.

To the Barrow Island and the Montebello Islands hold off on the green turtle, hawksbill turtle, flatback turtle and the occasional loggerhead turtle. Seven species of toothed whales and baleen whales were counted three, humpback whales remain there temporarily, and also dugong. There are 150 species of hard coral in the sea area and 15 bird species were observed.

On the coasts grow mangrove forests, alternating with sandy beaches. In the waters of the park there are also significant coral reefs teeming with tropical fauna.

Criticism of the project

The proposed project is moved to criticism from environmental groups, including the WWF Australia, who fear the possible demise of the ecology on the Bowen Island. Notified, the Gorgon project that 40 separate " quarantine officers " to the output ports of the cargo are stationed for the project in Asia and Europe to control which are designed to prevent foreign animals and plants go to the Barrow Island. The island is a nature reserve of the A- category and with an incidence of endemic flatback turtle, which is considered very vulnerable. The stock of other endemic animals on the island is existentially threatened.

Other concerns are about the adequacy of protective measures on the Barrow Island against the entry of non-endemic species that can destroy the existing flora and fauna and about the risks that arise in the disposal of CO2 in the geological structure expressed.

Basically distrust critics of the Government of Western Australia and in particular the ruling Liberal Party, which is always represented in the past only the interests of big business, ignored environmental concerns entirely and have the economic interests favored.

View

Chevron was in August 2010 that the gas reserves is so great and is already recognized that a fourth LNG train is necessary to use the amount of gas present and that, if necessary, a fifth will be required.