Chevron to Address Carbon Capture Shortfall at Australia LNG Project

Chevron said in a statement that it would invest AU$40 million in “lower carbon projects” and would buy and surrender 5.23 million greenhouse-gas offsets to fulfill obligations of the Australian LNG project.

Sonali Paul, Reuters

Chevron Corp. and its partners in the Gorgon LNG project in Western Australia have agreed to buy carbon credits likely to cost more than $180 million as a penalty for failing to meet a five-year target for carbon capture and storage (CCS).

The costs, which could amount to well over AU$250 million (US$184 million) based on Reuters calculations, will be shared with its Gorgon LNG partners—Exxon Mobil Corp., Royal Dutch Shell Plc and Japan’s Osaka Gas, Tokyo Gas and JERA.

The AU$3.1 billion Gorgon CCS project, the world’s largest commercial CCS project, is being penalized by the Western Australian government for injecting far less CO₂ than planned since the LNG plant started up five years ago.

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