Chevron Greenlights Major Investment for Gorgon Stage 3 LNG Expansion

Chevron Corporation CVX and its partners in the Gorgon Joint Venture have officially sanctioned the $2 billion Gorgon Stage 3 development — an important step in extending the life and output of one of Australia’s largest LNG projects. Located off Western Australia’s northwest coast, the expansion will sustain LNG exports while strengthening domestic energy security for decades.

Strengthening LNG Supply Through New Offshore Development

Gorgon Stage 3, envisioned in the project’s original development plans, marks the first of several anticipated subsea tieback expansions. The project will tie the offshore Geryon and Eurytion gas fields into Gorgon’s existing facilities on Barrow Island. The scope includes installing three subsea manifolds, a 35-kilometre production flowline and additional supporting infrastructure. The program will drill six wells across two offshore fields located roughly 100 kilometers northwest of Barrow Island, in water depths of around 1,300 meters.

Chevron describes Gorgon Stage 3 as a cost-efficient development that maximizes the use of existing facilities while aligning with the advanced Jansz-Io Compression Project and the previously completed Stage 2 infill work. The company plans to drill up to 40 wells across seven fields, supporting a notional project life through 2070. This backfill strategy ensures continuity for Gorgon’s significant export capacity while maintaining its daily domestic gas contribution.

Strategic Importance of the Gorgon Project

Gorgon is one of the world’s largest LNG ventures and the biggest single-resource development in Australia’s history. Based on Barrow Island, a Class A Nature Reserve, the project includes a three-train LNG facility capable of producing 15.6 million tons annually and a domestic gas plant supplying 300 terajoules per day to Western Australia. With an expected lifespan of over 40 years, Gorgon is set to remain a key contributor to Australia’s economy by providing reliable, cleaner-burning energy supported by advanced technology and strong environmental management. The project began LNG exports in March 2016 and started domestic gas deliveries later that year. To maintain long-term output, the Gorgon Stage 3 project will add new wells and subsea infrastructure, ensuring continued supply to existing LNG trains and the domestic gas plant.

The stage 3 project received regulatory acceptance in November following public consultation earlier in 2024. Gorgon is operated by Chevron (47.3%) and jointly owned by ExxonMobil (25%), Shell (25%), with Osaka Gas, JERA and MidOcean holding the remaining stake, which together bring deep expertise and financial strength to the venture.

CVX’s Zacks Rank & Key Picks

Houston, TX-based Chevron is one of the largest publicly traded oil and gas companies, participating in every aspect of the energy sector, from oil production to refining and marketing. Currently, CVX carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may consider some top-ranked stocks like Baytex Energy Corp. BTE, Par Pacific Holdings, Inc. PARR and Natural Gas Services Group, Inc. NGS, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Baytex Energy is a conventional oil and gas income trust focused on maintaining its production and asset base through internal property development and delivering consistent returns to its unitholders. The Zacks Consensus Estimate for BTE’s 2025 earnings indicates 9.5% year-over-year growth.

Houston-based Par Pacific Holdings manages and maintains interests in energy and infrastructure businesses. The Zacks Consensus Estimate for PARR’s 2025 earnings indicates 2170% year-over-year growth.

Natural Gas Services manufactures, fabricates, sells, rents and services natural gas compressors that enhance the production of natural gas wells. The Zacks Consensus Estimate for NGS’ 2025 earnings indicates 13.3% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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