Australia approves Chevron's $42b Gorgon LNG project

MELBOURNE: Australia approved Chevron Corp's A$50 billion ($42 billion) liquefied natural gas venture on a remote island, adding stricter conditions to quell environmental concerns about the nation's biggest resources project.

The additional terms for the Gorgon project will enable it to proceed within a nature reserve "without unacceptable impacts", Environment Minister Peter Garrett said in Canberra yesterday. Chevron has said the venture off the northwest shelf may produce its first LNG in 2014.

The decision clears one of the final obstacles to Chevron, Royal Dutch Shell Plc and Exxon Mobil Corp building the venture on Barrow Island, 50 km off the West Australian coast. Gorgon has contracts to supply fuel to China, India and Japan and is among more than 12 LNG projects in the region competing for Asian buyers.