Shell has committed capacity from the Energia Costa Azul terminal in Baja California, in which it holds 50% of the capacity rights, to take its share of gas from the Gorgon LNG project. This facility, which is currently under construction, will be the first LNG receiving terminal on the North American West Coast. Shell’s commitment secures a market for up to 2.5 million tonnes per annum of LNG from the proposed 10 million tonnes per annum initial Gorgon project. First deliveries to the North American West Coast are expected in 2010. Paul Oen, General Manager of Gorgon Area Gas, said a number of developments had moved the project closer to commercialisation. “We recently announced new commercial arrangements that will help facilitate the development of the vast Greater Gorgon gas resources. Today’s announcement is another positive step forward for the project,” Mr Oen said. Shell’s Gorgon Project Director Andy Calitz said “Shell is very committed to the development of the Greater Gorgon area and, by leveraging our international position in LNG infrastructure and downstream gas markets, we can help move the project forward. Securing this strategic position in the North American market provides a very tangible example of the benefits which the global reach of the Gorgon Joint Venture participants bring to Australian LNG projects.” The Gorgon Joint Venturers are also actively targeting LNG markets in China, Japan and Korea. The Gorgon joint venturers are affiliates of ChevronTexaco (operator and 50% interest), ExxonMobil (25%) and Shell (25%). The expression ‘Shell’ has been used for convenience where reference is made to companies of the Royal Dutch/Shell Group in general. Note: Under the recently signed Framework Agreement, affiliates of ChevronTexaco have 50%, ExxonMobil 25% and Shell 25% in the planned Barrow Island Gorgon Project Infrastructure Project and title areas WA-2R, WA-3R, WA-4R, WA-5R, WA-14R, WA-15R, WA-19R, WA-20R, WA-21R and WA-18R.
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