Chevron Australia Pty Ltd, a subsidiary of Chevron Corp., has awarded a USD 200 million front-end engineering and design (FEED) contract for the Gorgon LNG project to Kellogg Joint Venture Group (KJVG). KJVG, formed in January 2005, is a partnership between engineering, procurement and construction company KBR, Clough Ltd, JGC Corp. and Hatch Associates Pty Ltd Group. The Gorgon project will include laying the undersea gas network, developing and building the gas-processing facility and the construction of LNG shipping facilities. The undersea gas gathering system, which will consist of undersea trees, cluster manifolds, development wells, structures for pipeline termination and control systems, will be set up on the sea bed at a depth of 200 to 1300m. Most of the underwater equipment will be made of anti-corrosive alloys, such as duplex stainless steel. The gas reserves in this area are estimated to be in excess of 40 trillion cu/ft. Chevron Australia, which is the operator of the gas processing facility, holds a 50% stake in the project, while Royal Dutch Shell and Exxon Mobile hold 25% each. The scope of the FEED will include a 300 terajoule/day gas plant and three LNG trains, each with a capacity of 5 million tns/yr. The project, estimated to cost around USD 20 billion, will have the work authorization scope carried out from two operating stations in Perth and London.
