Chevron Awards A$2.7 Billion Gorgon Contract To Kellogg JV

Chevron Corp. (CVX) has awarded a A$2.7 billion contract for engineering and construction work on the A$43 billion Gorgon gas project to the Kellogg joint venture.

The Kellogg partners are KBR INC. (KBR) with 30%, JGC Corp. (1963.TO) with 30%, Clough Ltd. (CLO.AU) with 20% and Hatch Associates Pty. Ltd. with 20%.

KBR said the engineer, procure and construction manage, or EPCM, contract is for the construction of a liquefied natural gas plant on Barrow Island off the northwest coast of Western Australia state and for a 300 terajoule per day domestic gas plant.

The LNG facility will feature three processing trains, each with capacity of 5 million metric tons a year, gas processing and treatment facilities, product storage, and offsite utilities and accommodation.

The plant is to be constructed in modules offsite and then assembled on site to minimize impact on the environmentally sensitive island, KBR said.

"Our continued involvement with this large, modularized grassroots LNG project demonstrates KBR's commitment to providing our customers with leading LNG project execution and allows KBR to build on its LNG expertise and experience in Australia," KBR Group President of Hydrocarbons John Rose said in a statement.

Chevron and its partners in Gorgon - Exxon Mobil Corp. (XOM) and Royal Dutch Shell PLC (RDSB.LN) - signed off on the giant gas project on Monday and aim to ship first gas by 2014.

-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094; [e-mail]