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Group to apply for expansion of gas project in Australia

The partners in the giant Gorgon gas project off the coast of western Australia will seek approval to add a third processing plant to boost production of liquefied natural gas (LNG), Chevron Corp said yesterday.

The partners -- Chevron, Royal Dutch Shell PLC and Exxon Mobil Corp -- this year won approval to build two 5 million tonnes a year LNG processing plants, or trains, on Western Australia state's remote Barrow Island, but will now seek approval for a third, taking total output to 15 million tonnes a year.

"Developing three LNG production trains in quick succession improves project economics and addresses mounting industry cost pressures," said Scott Walker, a Chevron spokesman.

The Gorgon partners plan to submit an environmental assessment for the third train to the state's Environmental Protection Authority in early 2008.

The third train will be built within the approved 300-hectare development sight for the project and Chevron said it expects very little change to the environmental impact of the project.

Chevron said in the next 12 months the partners would work to secure approvals, commence front-end engineering and design work and boost the project team with the possibility of early works on Barrow Island.

Australia's federal government defied opposition from conservation groups and the state environment agency and approved the project, despite concerns that it will disturb the habitat of an endangered species of marine turtle.

Separately, Haiti is seeking a contract with Chevron to ship Venezuelan oil purchased under President Hugo Chavez's discount fuel program, a government official said on Sunday.

Haiti joined Chavez's Petrocaribe initiative more than a year ago, but has been unable to transport or receive any oil shipments so far, said Michael Lecorps, director of the aid management office in charge of implementing the program.

An agreement with Chevron to ship the oil from Venezuela to Haiti would allow the fuel-starved nation to import 14,000 barrels of oil a day, he said.

Under Petrocaribe's financing terms, Haiti would have three months to pay for 60 percent of each oil shipment, and 25 years to pay the balance at 1 percent interest, officials said.
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