PERTH Nov 13 Chevron's $37 billion
Gorgon liquefied natural gas (LNG) development is now 50 percent
complete, and still on track to go on line in 2014, a senior
executive said on Tuesday.
Gorgon LNG, the company's flagship development, is currently
undergoing a cost and schedule review as costs at other
Australian LNG developments have been growing rapidly due to a
high Australian dollar and the rising local price of doing
"It's no surprise that you would do (a review) on Gorgon,"
Chevron Australia's General Manager of Operations, Brian Smith,
said at an industry conference in Perth, but added that the
project is still expected to cost $37 billion, although he
hinted that the current estimate may change.
"The cost is still the same number at this point of time. It
may well be in the future that we may mention some other
number... the exchange rate has gone up, it's higher than when
project was approved," Smith said.
LNG plants are notorious for running over budget and missing
schedules. In Australia, three out of seven projects under
construction have announced cost increases of more than 20