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Australia : Chevron adds US$15b to estimated Gorgon project cost
Publish Date : 07-Dec-2012
Chevron Corp added US$15 billion to the cost of the Gorgon liquefied natural gas (LNG) export complex, as the US oil company\'s largest single development joins a growing list of Australian LNG projects to run over budget.
The new US$52 billion estimate for Gorgon, now 55 percent complete, came on Wednesday alongside Chevron\'s US$36.7 billion overall 2013 budget for capital and exploratory spending. That compares with a 2012 budget of US$32.7 billion, and is just shy of the US$37 billion annual budget of far-larger Exxon Mobil Corp .
Like other Australian LNG projects, Gorgon\'s inflated cost is largely due to labor shortages, logistics challenges and the strength of the local currency. Half of the six other LNG plants being built in the country have sustained cost increases averaging more than 20 per cent.
