Chevron upbeat on Gorgon but doubts persist
Chevron’s Gorgon LNG plant has started up and more trains are expected online this year and next. (Chevron)
United States-based major Chevron has dismissed concerns that low oil prices will affect its revenue stream from the Gorgon LNG plant. The company has underlined the robust nature of its contracts and said the project is profitable with oil prices at $40 per barrel.
Speaking to analysts this week after announcing Gorgon’s startup, Chevron’s Chief Executive John Watson admitted the oil market downturn "has been deeper and lasted longer than we and others expected". He said the company is having to shelve expenditure in other parts of the world to compensate.