Australia OKs Chevron’s plans for huge gas field
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Australia has given the green light to Chevron Corp.’s plans for a major natural gas production and liquefaction project off the country’s northwest coast.
The development of the Greater Gorgon fields is expected to provide huge quantities of liquefied gas for export to China and other Asian nations.
From Bloomberg News:
Environmental approval has been granted with an additional 28 conditions, Peter Garrett, federal environment minister, told reporters in Canberra today [Wednesday]. The ruling was among the final obstacles before Chevron, Royal Dutch Shell and Exxon Mobil Corp. can make a decision to build the venture. Gorgon is among more than 12 liquefied natural gas projects proposed for Australia and Papua New Guinea competing for Asian buyers.
San Ramon, Calif.-based Chevron is the operator of the project and has a 50% interest; Royal Dutch and ExxonMobil each have a 25% stake.
Australian Prime Minister Kevin Rudd has estimated that the value of gas sales from the Gorgon fields could total $249 billion (U.S.) over 20 years. Chevron calls Gorgon Australia’s single largest natural resources project.
ExxonMobil this month signed deals to sell much of its share of Gorgon production to Asian importers including PetroChina Co. and India’s Petronet LNG Ltd.
Chevron’s shares have rallied from a 2009 low of $56.46 on March 5. The stock slipped 11 cents to $70.65 on Tuesday.
Just an FYI for income-oriented investors: Major energy stocks have been sources of rising dividend income this year even as many other companies have slashed payouts because of slumping profit. Chevron raised its quarterly dividend 4.6% last month, to 68 cents a share from 65 cents.
The stock’s annualized dividend yield is 3.8%, based on Tuesday’s price.
-- Tom Petruno