$2 billion worth of money! Chevron (CVX.US) adds to Australia's largest LNG project

Zhitong Finance App learned that the Australian subsidiary of energy giant Chevron (CVX.US) and its joint venture partner said in a statement on Friday that they have reached a final investment decision to further develop the large-scale Gorgon gas project in Western Australia.

Chevron Australia and its partners — including ExxonMobil and Shell — will invest 3 billion Australian dollars (about $2 billion) to connect two offshore gas fields to existing infrastructure and processing facilities on Barrow Island (Barrow Island), the statement said. At the same time, six new wells will also be drilled.

Located on the remote Barrow Island in northwestern Australia, the Gorgon project is the largest resource development project in Australian history, producing approximately 15.6 million tons of liquefied natural gas (LNG) each year.

The IEA expects natural gas demand growth to accelerate in 2026 after slowing in 2025, driving aggregate demand to a record high. A sharp increase in the supply of liquefied natural gas is expected to ease the fundamental pressure on the market and promote strong demand growth in Asian price-sensitive markets.

The agency also expects global gas consumption to reach a record high in 2026, and demand growth will accelerate to about 2% as supply fundamentals slow. Natural gas consumption in the industrial and energy sectors is expected to account for about half of the new gas demand. Demand for natural gas power generation is expected to account for 30% of the increase in demand in 2026.