Regional LNG: Environmental authorities oppose ChevronTexaco's Gorgon LNG project

U.S. oil major ChevronTexaco Corp. is facing environmental opposition to its proposed A$6 billion Gorgon liquefied natural gas project offshore of North Western Australia, with two agencies advising the Western Australia State Government that they are opposed to the development, Dow Jones reported Tuesday.

But the State Government is still to make a final decision later this year and has asked both agencies to recommend appropriate conditions for any development should the government approve it.

ChevronTexaco wants to site an LNG plant on Barrow Island that lies half way between the Gorgon fields and the mainland some 130 kilometers away. Using Barrow Island would save the project around A$1 billion, but the island is a nature reserve.

"The Environmental Protection Authority and the Conservation Commission have advised they consider access to Barrow Island isn't compatible with the island's very significant environmental and conservation values," said Jim Limerick, director general of Western Australia's Department of Industry and Resources.

"As requested, those agencies have also recommended appropriate conditions for such access should the government agree to it," Limerick said in a statement.

Chevron has a 4/7th interest in the Gorgon fields and is partnered by Royal Dutch/Shell Group with a 2/7th interest and Exxon Mobil Corp. with a 1/7th interest. (*)