Gorgon LNG

ExxonMobil is a 25 percent foundation partner in the iconic Gorgon Project.  The project is developing the Greater Gorgon gas fields, including the Gorgon and Jansz-Io fields, located some 130 kilometres off the Western Australian coast.

The Gorgon Project will ultimately encompass 11 gas fields containing an estimated total recoverable resource in excess of 40 trillion cubic feet (tcf) of natural gas.  This represents around  25 percent of Australia’s known gas resources.

The development concept consists of subsea infrastructure for the production and transportation of gas from the Greater Gorgon gas fields to a 15 million tonne per annum LNG and domestic gas processing facility located on Barrow Island. The development concept for the Jansz-Io field includes a sub-sea tieback, one of the longest in the world, which will access gas that lies in approximately 1350 metres of water.

LNG will be produced at the gas processing facility and shipped to customers around the globe. An affiliate of ExxonMobil has completed the sale of its equity share of LNG in the Gorgon Project, with the execution of long-term sales and purchase agreements with PetroChina International Company Limited and Petronet LNG Limited of India. 

Gorgon is the largest single resource project in Australia.  It will not only deliver a reliable supply of natural gas internationally and to domestic gas customers in Western Australia, but also generate significant economic benefits.  Over the life of the project, these benefits include the potential for up to $33 billion spent on local goods and services, peak construction employment of around 10,000 direct and indirect jobs and the generation of $40 billion in additional revenue to State and Federal Governments.

Gorgon Project joint venture partners are ExxonMobil (25%), Shell (25%) and Chevron (47% and Operator) as well as gas buyers Osaka Gas (1.25%), Tokyo Gas (1.0%) and Chubu Electric Power (0.417%).

Gorgon and the environment
Barrow Island, location of the Gorgon Project, is an A Class Nature reserve and internationally significant due to its conservation values.  The island has also been the location of an existing operating oil field (WA Oil) since 1967 and is acknowledged world-wide as an example of how the petroleum industry and nature can exist successfully together. 

Extensive environmental analysis over many years has led to the development of numerous environment management plans which include advice and review by independent experts.  These management plans contain stringent measures to prevent or mitigate the potential for harm to the island and have been approved by State and Federal Governments.  Vigilant application of these plans with the assistance and oversight of permanent on-island Department of Environment and Conservation representatives will continue to protect the island’s biodiversity as the Gorgon Project develops. 

As one of a number of conservation programs the Gorgon Project has committed to, ExxonMobil has recently helped fund an initiative to relocate mammals and birds such as bandicoots and spinifexbirds from Barrow Island as part of a State Government program to restore animal populations on the mainland and other islands.

Gorgon and greenhouse gas management
The Gorgon Project will position Australia as a world leader in the application of greenhouse gas injection technology.  Carbon dioxide found naturally within the gas reservoirs will be extracted and injected into deep geological formations beneath Barrow Island.  This process is expected to reduce overall greenhouse gas emissions for the project by around 40 percent or 3.4 million tonnes of carbon dioxide per year. 

ExxonMobil has extensive experience in carbon capture and storage (CCS) technology and is a partner in one of the longest-running CCS projects in the world in Norway, which has sequestered over 10 million tons of carbon dioxide since 1998.  In addition, the company has recently committed $100 million to complete development and testing of an improved natural gas treating technology known as Controlled Freeze Zone which could make CCS more affordable.