Australian LNG projects enjoying strong margins

The Gorgon and Wheatstone LNG projects are now enjoying cash margins of more than $US30 a barrel at a $US50 price, Chevron says, and production from the $111 billion mega-projects is expected to increase this year.

New Chevron chief executive Mike Wirth told Wall Street analysts on Friday night that the US major’s two Australian LNG projects were “becoming strong cash generators with cash margins of more than $US30 per barrel at a $US50 Brent price.”

Last month, Gorgon produced an average of 459,000 barrels of oil equivalent a day and Wheatstone achieved 86,000 boe a day. Mr Wirth said Gorgon’s three trains and the first Wheatstone train were running well.

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(source Peter Milne | The West Australian)

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