A nature reserve is an unlikely site for a major new energy plant, but Chevron is showing how it can work.
Barrow Island, a Class A nature reserve off Australia's west coast, will be home to the Gorgon Project, which will tap into vast natural gas resources 43.5 miles (70 km) northwest of the island. The island's rich and unique biodiversity has remained intact since naturalist John Thomas Tunney's writings secured its designation as a wildlife refuge a century ago. Its conservation is a national priority.
Chevron is no stranger here, having successfully operated on Barrow for more than 45 years while minimizing our footprint on the island. Building on this environmental stewardship involves a mix of advanced technology and a commitment to detail, addressing everything from greenhouse gas (GHG) emissions to local concerns over light levels from our operations on Barrow's nearby beaches where turtles lay their eggs. Our strong environmental performance has allowed us to expand operations, resulting in a benefit to our business and the Australian economy.
Strengthening the Economy
At $37 billion (AU$43 billion), the Gorgon Project will be Chevron's largest investment, targeting 40 trillion cubic feet of gas. Gorgon represents the single biggest resource project in Australia's history. Independent consulting firm ACIL Tasman estimates that Gorgon will contribute $56 billion (AU$65 billion) to Australia's gross domestic product. More than $8 billion (AU$9 billion) has already been committed to companies in Australia—and total spending in Australia is targeted at $17 billion (AU$20 billion) over five years.
"Many people don't realize that through Gorgon, Chevron is providing opportunities and benefits on a scale never seen before in this country," said Chevron Australia managing director Roy Krzywosinski.
Natural gas will be offloaded from Barrow Island as liquefied natural gas (LNG) and transported mostly to Asian markets, while gas for Western Australia's consumption will be piped ashore. Gorgon precedes our Wheatstone Project, a second offshore natural gas project currently in the planning stages.
Australia's prime minister, Julia Gillard, toured the project site in March 2010 and said, "Having been here and seen Barrow Island and [the] Gorgon Project, it's given me a real sense of the size and scale of this project and what it is going to mean to the nation's future… This is a great project for employment in this country."
Reducing Emissions
Natural gas is the cleanest-burning fossil fuel. Gorgon will include the world's largest carbon dioxide (CO2) injection project, which will inject 40 percent of the project's GHG emissions underground. This will make Gorgon one of the world's least GHG-intensive LNG facilities. The injection project will separate the CO2, a natural component of produced gas, and inject it 1.6 miles (2.6 km) beneath the island into a deep sandstone reservoir. The Australian government is a partner here, having contributed $51 million (AU$59 million) to the injection project as part of its Low Emissions Technology Demonstration Fund.
The plan was recognized internationally by the Carbon Sequestration Leadership Forum, a group of 24 national governments and the European Commission. We will share data from the project, which will accelerate and enhance scientific understanding of a technology some scientists believe could play an important role in reducing global GHG emissions.
Partnering With Residents of Western Australia
We are taking steps to make sure Gorgon benefits the residents of Australia, both economically and socially. Thus far, Gorgon has created 4,000 jobs in Australia. At peak construction, it will employ 10,000 people.
A $394 million (AU$458 million) construction village is being designed and built by a joint venture between companies in Australia—Thiess, Decmil and Kentz. Thiess managing director David Saxelby said a significant aspect of the contract was that it offered enormous potential for local jobs, and up to 70 percent of the contract requirements would be sourced in Western Australia.
In 2009, Australia's Ausco Modular was laying off workers. In 2010, it hired 200 people to build offices, labs and control rooms worth $51 million (AU$59 million) for Gorgon. Already some 80 vessels, employing hundreds of workers, are supporting Gorgon's dredging and the delivery of supplies and materials.
Other Australian companies have benefited through hundreds of jobs created in freight, construction, general utilities, accommodation, telecommunications and site preparation. Howard Porter, a local company, had 70 employees building 300 trailers for Gorgon under a $17 million (AU$20 million) contract that Porter called the single biggest transport manufacturing order ever in Western Australia.
Gorgon also is a magnet for talent. A recent Chevron employee meeting in Perth included many people who had been on the job less than a week, but that's business as usual as the company fills a new 13-story office tower with about 800 Gorgon workers.
Our collaborative approach played a significant role in developing the native title agreements with the Kuruma Marthudunera people in June 2010 and the Yaburara Mardudhunera people in November 2010 for the Gorgon Project's domestic gas pipeline.
Under the Chevron-operated Gorgon Project Cultural Heritage Management Plan, Australian Aboriginal people are involved to help the project avoid heritage sites. "When we were surveying our country with the company [Chevron], we came across several important sites in the designated construction area," Kuruma Marthudunera spokesperson Cyril Lockyer said. "And after talking with Chevron, the result is that the company will build the pipeline around these areas and not destroy these sites. This type of working relationship will help us preserve our heritage for future generations."
With our commitment to Aboriginal employment, construction contractors and others are encouraged to hire Aboriginal people. Additionally, we are working to identify longer-term career opportunities. Peter Eggleston, Chevron Australia's External Affairs manager, said, "We're now very much a part of and are engaged extensively with Aboriginal communities in the areas near our operations."
Business and Nature Coexist
Barrow Island, once attached to the continent of Australia, now lies about 43.5 miles (70 km) offshore, having been separated from the mainland and becoming a sort of living ark. It is home to more than 350 species of native plants, 14 species of mammals, 100 species of birds and 54 species of reptiles. Some of them are found no other place on Earth.
We have been working with Harry Butler, Ph.D., one of Australia's premier conservationists, throughout oil production and Gorgon development to minimize any impact to the island ecology.
"Today, all the species I experienced when I first visited Barrow Island in 1963 remain," he said. "When you have a world-class quarantine process supported by a workforce that truly cares for the environment, this is what you can achieve."
We minimized the project's footprint on the island itself. The seismic survey of the underground geology where CO2 will be injected was also modified. A conventional survey, consisting of clearing paths to accommodate heavy trucks that haul necessary equipment, would have disturbed about 700 acres (283 ha). Instead, a freight helicopter did most of the heavy lifting—approximately 15,000 separate lifts—while lighter equipment was carried by foot. By the end, fewer than 47 acres (19 ha) were disturbed.
Donna Parker, CO2-injection project manager, is one of those who are proud of the achievement. "This extraordinary effort by all involved was vital to delivering baseline survey results and maintaining our reputation as an environmental champion of Barrow Island," she said.
To prevent invasive species and other pests from being brought onto the island, we have a rigorous and expansive quarantine plan, which Western Australia's Environmental Protection Authority said "likely represents the best practice in the quarantine management of a large operation."
Our quarantine management procedure, in place for more than 45 years, has improved over time. Goods being shipped through the Dampier supply base are tagged with one of three colors to make sure the required procedures are taken. Nothing is shipped to Barrow without a green tag. At the Australian Marine Complex in Henderson is a quarantine washdown area resembling a huge parking lot and a giant shed big enough to cover a football field. There's also a larger-than-life hair dryer that cleans vehicles and goods bound for the island. And the process doesn't end when the freight is put on ships. At the island, inspectors can stop goods and return them to the mainland on the next barge. Today, Barrow is the only island in the region free from introduced species such as cats, rabbits, rats and mice.
Yet another environmental consideration is the nighttime lighting necessary for the new LNG plant. Four species of sea turtles nest on Barrow, and light can cause them and their hatchlings stress.
Daniela Ratcheva, a senior environmental engineer with Chevron Australia, delivered a detailed presentation to a conference in Queensland in September 2010. She demonstrated how we engineered the plant's lighting systems to not disturb turtles and to comply with the stringent environmental approval conditions and applicable safety laws and standards while not compromising safe operability.
Updated: May 2011