Chevron, a US-based energy company, has been given federal environmental approval to begin developing an LNG plant in northwest Australia.
The project, along with partners ExxonMobil and Royal Dutch Shell, will involve the construction of an LNG plant on Barrow Island, off the coast of western Australia state. The plant has the capacity to produce about 10 million tonnes of LNG a year.
The construction phase will last four years. Chevron has a 50% interest in the project, with Exxon Mobil and Royal Dutch Shell each holding a 25% stake.
Chevron has signed Heads of Agreements with three Japanese companies for the sale of a combined total of 4.2 million tonnes a year starting after 2010.