TechnipFMC Nets Contract for Gorgon Stage 2
Chevron has awarded TechnipFMC a subsea installation contract for its Gorgon Stage 2 development offshore western Australia. The contract will cover project management and the engineering, transportation, installation, and pre-commissioning of umbilicals and flying leads as well as manifolds.
Located in water depths ranging from 820 to 4,396 ft, Gorgon has a total production capacity of approximately 2.6 Bcf of natural gas and 20,000 bbl/D of condensate. The project, which came on stream in March 2016, comprises of offshore facilities feeding gas and condensate into three liquefied natural gas (LNG) trains and a domestic gas plant on Barrow Island, located 31 mi northwest off the Pilbara coast of western Australia. The gas plant came on stream in December 2016.
The Gorgon plant is the largest in Australia, handling 15.6 million tonnes/yr. It is a joint venture between ExxonMobil, Shell, Osaka Gas, Tokyo Gas, and Chubu Electric Power. Chevron holds a controlling 47.3% interest in the Gorgon project. ExxonMobil and Shell each hold a 25% stake.
Stage 2 of the project includes expansion of the existing subsea facilities that help maintain a long-term natural gas supply. Reuters reported that the drilling program is expected start next year, and the full expansion could take about four years.
Last month Chevron awarded Baker Hughes, a GE company, contracts to supply subsea production systems and well completion equipment for the project.
Freeport LNG Train 1 Begins Production
Freeport marks the sixth major LNG export facility to start operations in the US. Commercial deliveries are expected to begin in September, with Osaka Gas and JERA taking half of the Train 1’s offtake capacity.
July Marks Record Month for Gas Deliveries To US LNG Export Facilities
The US EIA reports that natural gas deliveries producting LNG for export reached 6.0 Bcf/D in July. Deliveries to LNG export facilities have been the fastest growing among all natural gas consumption sectors this year.
Shenzhen Gas Set to Open New LNG Terminal
The launch will make Shenzhen Gas the second Chinese city gas distributor backed by a local government to own an LNG import facility, following Shenergy Group’s Shanghai import terminal. Eni is set to deliver an initial cargo to the facility.
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