$1.98 billion chapter to ‘world-class’ gas story coming up next off Australia

December 8, 2025, by Melisa Cavcic

Chevron Australia, a subsidiary of the U.S. oil and gas giant Chevron, has decided to move forward with the third stage of development for its giant gas project off the northwest coast of Western Australia (WA) to support long-term local and regional energy security.

While disclosing a final investment decision (FID) on the Gorgon Stage 3 development, Chevron explains that the A$3 billion ($1.98 billion) backfill development will connect the offshore Geryon and Eurytion natural gas fields in the Greater Gorgon Area to the existing subsea gas gathering infrastructure and processing facilities on Barrow Island.

Balaji Krishnamurthy, Chevron Australia’s President, said the development would maintain production at Gorgon, enabling the long-term supply of domestic gas for WA households and industry, and liquefied natural gas (LNG) for international customers in Asia.

Krishnamurthy underlined: “Gorgon is a world-class energy asset which plays a crucial role in supporting the economic development and energy security of millions of people in Australia and across the Asia Pacific region.

“With the development of the Geryon and Eurytion fields – to join the existing Gorgon and Jansz-Io fields in providing gas supply for the processing facilities – we can continue providing the reliable energy the world needs, maintaining thousands of highly skilled jobs in Australia, supporting regional WA communities and contributing to government revenue.”

The development entails the installation of three manifolds and a 35-kilometer production flowline among other associated infrastructure, with six wells expected to be drilled in the two fields about 100 kilometers northwest of Barrow Island in water depths of about 1,300 meters.

As part of the original development plan for Gorgon, which has the capacity to produce 300 terajoules per day of gas for the WA market and 15.6 million tonnes of LNG per year, Gorgon Stage 3 is the first in a series of planned subsea tie-backs.

“Gorgon Stage 3 is a cost-competitive development which will optimise existing infrastructure and complement the well-progressed Jansz-Io Compression Project and previously completed Gorgon Stage 2 infill development,” added Krishnamurthy.

The Chevron-operated Gorgon project is a joint venture between the Australian subsidiaries of Chevron (47.33%), ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), MidOcean (1%) and JERA (0.417%).

Barrow Island is also home to what Chevron says is the world’s largest carbon capture and storage (CCS) system, located at the Gorgon liquefied natural gas (LNG) facility. After start-up in 2019, the Gorgon CCS system is meant to remain in operation for over 40 years.

As part of the CCS project, naturally occurring CO2 is taken from offshore gas reservoirs and injected into a giant sandstone formation two kilometers under Barrow Island. According to Chevron, more than 11 million tonnes of CO2 have been injected into the reservoirs from 2019 to May 2025.

Additionally, 100 million tonnes of CO2 are expected to be mitigated over the life of the CCS system. The Australian Government committed $60 million to the Gorgon CO2 injection project as part of the Low Emissions Technology Demonstration Fund (LETDF).

Chevron has already set aside about $7 billion from its budget for 2026 for offshore oil and gas moves across Guyana, Eastern Mediterranean, and the Gulf of America (U.S. Gulf of Mexico).