Chevron has started gas production from the Gorgon Stage 2 development project off the coast of Western Australia.

The Gorgon Stage 2 development project expands the subsea gas gathering network of the Gorgon Project located around 130km off the north-west coast of Western Australia.

The expansion project involved the installation of 11 additional wells in the Gorgon and Jansz-Io fields. It also included installation of offshore production pipelines and subsea structures to ensure the supply of feed gas for the project's gas processing facilities on Barrow Island.

Chevron Australia managing director Mark Hatfield said: “The development supports the longevity of the Gorgon Project and the continuation of its already significant ongoing benefits including highly skilled local employment, economic activity as well as state and federal government revenue for decades to come.

“Adding to the initial A$40bn [$26.8bn] spend on Australian goods and services from the Gorgon Project since 2009, the development created more than 800 jobs in Western Australia through drilling and completion activities, subsea infrastructure installation and project management.”

The Gorgon liquefied natural gas (LNG) project on Barrow Island comprises three trains with a combined capacity of 15.6 million tonnes of gas per annum, and a domestic gas plant.

The project exports LNG to Asia-Pacific customers. It also produces domestic gas for the Western Australian market.   

Chevron operates the Gorgon LNG project with a 47% stake, while other partners include Exxon Mobil, Shell and Japanese utilities Osaka Gas, Tokyo Gas and Jera.

Recently, Chevron agreed to acquire US-based shale producer PDC Energy in a transaction valued at $6.3bn.

The acquisition is expected to add 275,000 acres in proximity to Chevron’s existing position in the Denver-Julesburg Basin.