Gorgon-Jansz LNG project partners clash over Train 4 timing

An ExxonMobil Corp. executive has reportedly disagreed with operator Chevron Corp. on the timing of the fourth train for the Gorgon-Jansz LNG project.

Luke Musgrave, ExxonMobil vice-president of LNG, reportedly said his company believed the timing mentioned by Chevron for front-end engineering and design (FEED) to begin on Train 4 late this year was too aggressive.

Musgrave pointed out that the construction work on the first phase of the project was still only about half completed.

He said the group was unlikely to see FEED as early as Chevron had stated. He said Train 4 was an aspiration of all the partners. However, while recent gas discoveries were building confidence for another expansion of the LNG project, ExxonMobil was not yet comfortable about going ahead.

Royal Dutch Shell PLC also is reportedly wary of Chevron’s timing. Michael Carey, Shell Australia vice-president of finance and strategy, is reported as saying that Shell and the other Gorgon-Jansz JV participants are conducting a cost and schedule review. More should be known when that process is complete.

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