Regional LNG: Chevron chief lobbies for Gorgon LNG nod

Intensive high-level lobbying is taking place in a bid to accelerate government approvals for the Gorgon LNG project to be sited on sensitive Barrow Island in Western Australia, The Australian reported Tuesday.

The lobbying effort involves the most senior levels of US giant Chevron Corporation, including the group's executive vice-president upstream and gas, George Kirkland.

The project, which was costed three years ago at around US$11 billion, has been subject of an adverse finding from Western Australia's Environmental Protection Authority.

In June, the EPA said the project to produce up to 10 million tonnes of LNG a year from the huge Gorgon gas reserves offshore had not provided adequate provisions for nesting sites for the flatback turtle.

The EPA was also concerned about quarantine provisions for Barrow Island, which has been a Class-A nature reserve since 1911, during the construction phase which will attract a workforce of 2500. It was also worried about the effects of dredging for a load-out berth on the marine environment close by.

The Gorgon LNG development is among the top five projects Chevron has under consideration around the world.

Kirkland, who has responsibility for Chevron's half stake in Gorgon, met Premier Alan Carpenter in Perth yesterday and is scheduled to meet federal Resources Minister Ian Macfarlane Wednesday.

Chevron is known to be concerned that unless it obtains "timely" approvals for the project, it may not meet its recently revised shipping schedule for Japanese customers of 2011-12.

While Carpenter has said he is a very strong supporter of the project, the appeals process on the EPA decision is not completed and a formal decision from the state Government is still some months away.(*)