Chevron struggling to sell Gorgon LNG capacity

Chevron is having a hard time to complete the 20-years sales contracts for its Gorgon LNG export plant in Australia, as buyers look for cheaper deals.

Shale gas developments in the U.S. have spoiled buyers for choice and created problems for LNG projects in Australia that are nearing completion.

Reuters reports that Chevron expected to tie in contracts for 85 pct of production of the Gorgon LNG project, yet so far the company has only managed to secure the sales of 65 pct of the project’s capacity.

“With the degree of uncertainty that there is about U.S. exports and the size of U.S. exports, I think you can understand why buyers might want to wait a little bit to see how that all lands out before going forward to secure longer-term contracts,” Chevron Chief Financial Officer Pat Yarrington told at a briefing.

LNG World News Staff, August 26, 2014; Image: Chevron