CANBERRA: Chevron (NYSE:CVX) signals an end to major new liquefied natural gas projects in Western Australia and is unlikely to sanction an expansion of its Gorgon and Wheatstone export developments, Bloomberg reports.
The climate for developing large greenfield LNG projects has shifted to smaller developments given the drop in crude oil prices back below $50/bbl, says Nigel Hearne, a managing director with CVX’s Australia unit. “I can’t see in the near-term us investing in a fourth train at Gorgon or a third train at Wheatstone,” Hearne says, explaining that CVX is focused on generating returns on ~$88B in its existing investments. The first train from the $34B Wheatstone project remains on schedule for mid-2017, Hearne says.
