Woodside sold the project to an insubstantial company to avoid a few hundred million in decommissioning costs: now it and its competitors will pay the price.
US oil and gas supermajor Chevron is the major LNG producer in WA with its Gorgon and Wheatstone LNG projects and a share in the North West Shelf project.
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Gorgon LNG's carbon emissions will jump by more than one million tonnes a year until Chevron fixes an underground pressure management problem that caused WA's safety regulator to curtail CO2 injection by two-thirds.
Technical problems at Gorgon and Wheatstone will give Chevron Australia another year of reduced LNG production while US headquarters remains hesitant about the energy transition.
The WA safety regulator has told Chevron to turn down Australia's $3.1 billion showpiece Gorgon LNG carbon capture and storage system until problems are fixed, meaning carbon emissions will rise.
Chevron has another pressure vessel to worry about, this time on the Wheatstone platform, after Gorgon LNG production was slashed this year to fix faulty welds.
Chevron slashes more than $US20 billion off its five-year spend due to lower demand and prices for fossil fuels but allocates just 2% of its 2022 budget to the energy transition.
Al Williams will leave Australia to manage Chevron's global reputation after handling numerous crises in his three years in charge of the Gorgon and Wheatstone LNG projects.
Gorgon LNG has emitted 7 million tonnes of climate-warming CO2 more than permitted but Chevron is unlikely to suffer at the hands of lax Australian governments.
Chevron, Santos and Kerry Stokes' BCI Minerals are battling in court over responsibility for gas pipelines supplying 40 per cent of the WA market that traverse the $780 million Mardie salt project.
Welders will have to grind out and redo repairs at Gorgon performed to an incorrect procedure provided by Chevron and the delay could cost up to $250M.
Chevron's problems at Gorgon LNG from faulty welds years ago in a South Korean factory continue with delays to repairing the first of three trains to be fixed.
