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World's Biggest LNG Project Is Starting in the Worst Market in Years

  • Gorgon LNG terminal that cost $54 billion to begin this year
  • Spot price for LNG exports to Asia falls to lowest since 2010
Bloomberg business news

Chevron's $54B LNG Project to Start

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After years of delays, cost overruns and labor unrest, Chevron Corp.’s Gorgon project, one of the world’s most expensive liquefied natural gas ventures, faces another challenge: the weakest energy prices in more than a decade.

As Chevron prepares to start exports from the development off northwest Australia, oil prices -- which traditionally determine the value of LNG shipments -- are languishing near 12-year lows. The project will add to a wave of new supply, including the first deliveries from the U.S., amid weakening demand.