Shell | Northwest Coast Energy News

Rio Tinto, Shell LNG on shopping spree in China: Financial Times

Britain’s Financial Times today chose two Kitimat related companies to highlight how western business is turning more and more to China.

Shell turns to Asian suppliers in US shale race (Registration/subscription required)

Royal Dutch Shell has said it will deploy more Chinese equipment at its struggling US shale business – becoming the latest natural resources company to try to reduce costs by switching to cheaper Asian suppliers.
Miners such as Rio Tinto and Antofagasta have already been encouraged by improvements in the reliability of Chinese machinery, which they say can now be integrated into their existing operations without compromising efficiency or safety standards….

Shell’s move comes as oil and mining companies – which ramped up capital expenditure in recent years amid a huge commodities boom – are being pressed by shareholders to curb spending and improve returns….

Rio Tinto, the Anglo-Australian miner, has also been on a spending spree in China. The company, which is slashing its capital spending after disappointing investors with cost overruns, says it made close to $2bn-worth of equipment purchases in China last year, and around $1bn-worth in India.

Rio Tinto Alcan has said that much of the building materials and equipment for the Kitimat Modernization Project has come from China, often in huge modules which are then inserted into the new buildings as part of the aluminum smelter upgrades.

Kitimat Votes: Douglas Channel Watch soft launches new website

The Kitimat environmental group Douglas Channel Watch has soft launched a new website.

It can be found at douglaschannelwatch.ca.

At the moment the site redirects to the web designer site, as that company continues to build the site.

Full operation of the website is expected to begin in the next few days.

Douglas Channel Watch is playing catchup. Enbridge Northern Gateway launched a plebiscite vote yes website YesforKitimat, a couple of weeks ago.

Skeena Bulkley Valley MP Nathan Cullen and the New Democratic Party also have a campaign website, largely aimed at the rest of the province, Take Back Our Coast promoting rallies in Campbell River, Powell River, Courtney, Duncan, Victoria and Vancouver.

The two major Kitimat LNG projects are also about to launch new websites. Shell’s LNG Canada held focus groups and discussions in Kitimat a few weeks ago as part of the company’s planning for its new website, which LNG Canada public relations staff said would be more engaging for the residents of the region. At the recent open house, Chevron, which is building the KM LNG project at Bish Cove also said they were redesigning their website.

Coastal GasLink pipeline opens environmental assessment process

The Coastal Gaslink pipeline proposal to bring natural gas to Kitimat for the Shell LNG Canada project is now entering the 45 day public comment environmental assessment period. It opens on March 21, 2014 and closes May 5, 2014.

Coastal GasLink Pipeline is a wholly-owned subsidiary of TransCanada Pipelines. The company is proposing to develop an approximately 650 kilometre pipeline to deliver natural gas from the area near the community of Groundbirch, B.C., to the LNG Canada gas liquefaction facility proposed to be developed by Shell Canada Ltd. and its partners in Kitimat.

An electronic copy of the Application and information regarding the British Columbia environmental assessment process are available at www.eao.gov.bc.ca.

The British Columbia Environmental Assessment Office, with the support of Coastal GasLink, will host four open houses in northern B.C. communities during the comment period.

The proposed Project would have an initial capacity of about two to three billion cubic feet (bcf) of natural gas per day with the potential for expansion up to about five billion cubic feet per day. The company says the expansion scenario assessed in the application does not involve the construction of additional pipeline; the number of potential future compressor stations would change.

The proposed pipeline is subject to review under British Columbia’s Environmental Assessment Act.

Starting on March 21, there are 45 days for the submission of comments by the public in relation to the Application. All comments received during this comment period will be considered. The intention of seeking public comments is to ensure that all potential adverse effects – environmental, economic, social, heritage and health – that might result from the proposed Project are identified for consideration as part of the assessment process.

The BC EAO accepts public comments by:

• By Online Form: http://www.eao.gov.bc.ca

• By Mail:

Mr. Brian Westgate
Project Assessment Manager
Environmental Assessment Office
P.O. Box 9426 Stn Prov Govt
Victoria, B.C. V8W 9V1

• By Fax: 250-356-7477

Copies of the application are available in digital or paper form at public libraries in the project area.

The BC EAO invites the public to Open House events on the following dates:

March 27, 2014: Chetwynd & District Recreation Centre
April 1, 2014: Fraser Lake Recreation Complex
April 2, 2014: Burns Lake Heritage Centre
April 3, 2014: Riverlodge Recreation Centre, Kitimat

LNG Canada passes first step in BC environmental review, to hold LNG demonstration at Mt. Elizabeth Theatre

LNG Canada, the project led by Shell Canada Energy, has passed the first step in the environmental review process for the liquified natural gas plant and terminal.

LNG Canada said Tuesday that the British Columbia Environmental Assessment Office has approved LNG Canada’s Application Information Requirements (AIR) for the proposed project.

The company says the AIR outlines the studies, methods, and information that will be required in LNG Canada’s Application for an Environmental Assessment Certificate.

The LNG Canada AIR was developed in consideration of comments submitted by the public, First Nations and regulators during a 30-day public comment period held in November/December 2013, including a public meeting at the Kitimat Rod & Gun, where documents were distributed and employees answered questions from politicians and the public.

LNG Canada says it will now continue to gather information and complete studies in support of developing our Environmental Assessment Application.

The company intends submit to the Environmental Assessment Application to the the B.C. EAO later this year.

LNG Canada will hold its next public meeting, an “LNG Demonstration and Presentation” on March 6, 2014 at the Mount Elizabeth Theatre starting at 6 p.m. The company says the event is to “to share information and answer questions about liquefied natural gas (LNG).” Starting at 7 pm there will be a a live demonstration using LNG to explain the science behind liquefaction and the properties of LNG.

For more information about the project’s EA process, www.eao.gov.bc.ca and look for our project under the “Proposed EAs” sections.

The other partners in the LNG Canada project are Diamond LNG Canada, an (“affiliate” of Mitsubishi), Korea Gas Corporation and Phoenix Energy (an “affiliate” of PetroChina).

Rio Tinto sells Kitimat wharf and land options to LNG Canada

LNG Canada footprint map — A map provided by LNG Canada shows the potential footprint of the liquifaction facility and marine terminal next to the Rio Tinto Alcan aluminum smelter. The map was part of LNG Canada’s filing for a BC environmental assessment and shows that the old Eurocan dock would be part of the facility.(LNG Canada)

Rio Tinto has signed an option agreement with the LNG Canada project “to acquire or lease a wharf and associated land at its port facility” in Kitimat.

A news release from Rio Tinto’s head office in London says: “The agreement provides LNG Canada with a staged series of options payable against project milestones. The financial arrangements are commercially confidential.”

Since LNG Canada, a joint venture of Shell Canada Energy, Phoenix Energy Holdings Limited (an affiliate of Petro-China Investment (Hong Kong) Limited), Kogas Canada LNG Ltd. (an affiliate of Korea Gas Corporation) and Diamond LNG Canada Ltd. (an affiliate of Mitsubishi Corporation) has not yet made a Final Investment Decision on the project, the option will likely be triggered if that decision is made. There is currently uncertainty about Royal Dutch Shell projects worldwide due to management restructuring at the parent company.

The news release quotes Sam Walsh, chief executive, Rio Tinto as saying: “This is an excellent example of how we can generate meaningful value from our existing assets by selling options on port facilities to LNG Canada enabling it to share one of the best deep water ports on the western seaboard of the country. This innovative approach will provide an expanded gateway for Canadian resources to worldwide markets which has the potential to benefit the communities and economy of British Columbia.”

Andy Calitz, vice president, LNG Canada commented in the news release: “We are pleased to confirm the finalization of this agreement. We believe the LNG Canada project represents the best opportunity to bring the liquefied natural gas industry and its benefits to the people and
communities of British Columbia.”

The deal between Rio Tinto, parent company of Rio Tinto Alcan, for the old Eurocan dock, has been in the works for some time. When LNG Canada filed for its environmental assessment with the province of British Columbia a few weeks ago, the map showed the footprint of the project extended from the old Methanex plant site, where LNG Canada will be located through RTA lands on the Kitimat river estuary to the dock, long before Wednesday’s deal was signed.

Commentary: In the tanker study, the District of Kitimat was missing in action

The list of participants in the oil spill preparedness and response study released last week by the federal government shows two glaring no shows, the District of Kitimat and Rio Tinto Alcan.
The Haisla Nation and the Gitga’at Nation did provide written submissions to the panel.

The expert panel was set up by the federal government to review “oil handling facilities and ship-source oil spill preparedness and response.” The expert panel was to review the “structure, functionality and the overall efficiency and effectiveness of the system, as well as analyzing the requirements for hazardous and noxious substances, including liquefied natural gas.”

Transport Canada tanker report — Expert panel tanker risk assessment report cover (Transport Canada)

As well as commissioning the Genivar report on the state of oil spill preparedness and consequences, the panel interviewed stakeholders and visited a few key locations, including Port Metro Vancouver.

The panel also invited any interested groups to submit documents or their own views to be taken into consideration.

Among the stakeholders interviewed by the panel were companies and organizations very familiar to Kitimat; Chevron and Shell, main partners in two of the LNG projects; Enbridge, which has proposed the Northern Gateway Pipeline and Kinder Morgan which has proposed expanding the dilbit pipeline on the Lower Mainland. Other stakeholders included Coastal First Nations, the Prince Rupert Port Authority, SMIT Marine and the Vancouver Port Authority.

As well as the Haisla and the Gitga’at, five west coast municipalities submitted their own reports to the tanker panel, both the city and districts of North Vancouver, the city of Richmond, the District of Ucluelet and the District of West Vancouver. San Juan County in Washington State also made a submission to the panel. So did the Prince Rupert and Vancouver Port authorities.

Chevron, Enbridge, Imperial Oil, Kinder Morgan, Pacific Northwest LNG, Seaspan Marine, and the Union of BC Municipalities, among others also submitted their views to the panel.

So why didn’t the District of Kitimat participate? When it came to the Enbridge Northern Gateway Joint Review, the mayor and council always maintained their neutrality motion meant that the District would not be an active participant. That was always a short sighted viewpoint. The District should have participated actively in the JRP in such a way as to protect the region’s interests where necessary while remaining neutral. If the District of Kitimat sat out the tanker panel because of the Northern Gateway neutrality policy, that was no excuse, because the expert panel’s mandate specifically included LNG.

Tanker traffic is a potential threat to the San Juan Islands (the Gulf Islands on the American side of the border). It is astounding that San Juan County would think that the Canadian tanker panel was important enough to make a submission and the District of Kitimat did not.

What about Rio Tinto Alcan? Kitimat has been a private port for 60 years, run first by Alcan and then by Rio Tinto Alcan. Why wasn’t RTA asked to participate as a stakeholder? Why didn’t RTA make a submission? Those who are pushing the Northern Gateway terminal always like to say that tankers have been calling at Kitimat for those 60 years. That is true. Of course, none of those tankers have been the Very Large Crude Carriers proposed by Northern Gateway. However, those 60 years means that RTA has the expertise on the Port of Kitimat and Douglas Channel. RTA probably has important data that could have helped both the expert panel and Genivar (which pointed out the paucity of data on small and medium sized tankers). In not participating in the tanker panel submissions and possibly not providing valuable data on Douglas Channel, RTA neglected its social responsibility both to the community of Kitimat and the rest of the province of British Columbia.

LNG Canada aims to be “first out of the gate” in the rush to develop in Kitimat

LNG Canada meeting — Residents of Kitimat discuss the proposed LNG Canada facility with company officials at the Rod and Gun, Nov. 27, 2013 (Robin Rowland/Northwest Coast Energy News)

LNG Canada says it wants to be “first out of the gate” in the competitive race to send BC’s liquified natural gas to Asian markets.

The company held a well attended open house at the Kitimat Rod and Gun on November 27, with the usual array of posters and experts, to mark the beginning of the environmental assessment process for what is formally called the “LNG Canada Export Terminal Project.:

The LNG Canada Export Project is a partnership of Shell,Canada Energy, Diamond LNG Canada, an (“affiliate” of Mitsubishi), Korea Gas Corporation and Phoenix Energy (an “affiliate” of PetroChina) filed a draft application for an Environmental Assessment Certificate with the BC Environmental Assessment Office and Canadian Environmental Assessment Agency on November 8. The 30-day public comment period on the draft Application Information Requirements started on November 13, 2013 and end on December 13, 2013.

The extensive documentation can be downloaded in PDF format from the BCEAO site. The documents can also be viewed at the Kitimat and Terrace Public Libraries and the LNG Canada office in Kitimat at the old Methanex site.

“What we want to be able to do is actually to provide information in a way that we can provide a lot of conversation with the community, so we can really have a dialogue, to give them a place where they know than go to get answers. We do believe that we can be the best project in British Columbia, the only way we can do that is if we have the support of the community,” LNG Canada’s Susannah Pierce told reporters.

“We would like to be first out of the gate. This is a competitive industry and we’re not just competing in terms of providing Canadian gas to the Asian markets, we’re competing with everyone else for the opportunity to deliver product to market.”

The application says that the all-important Financial Investment Decision will likely be “made mid-decade followed by 4-5 years of construction with commissioning of the first phase to follow.”

The first phase would have a first phase of about 12 million tonnes a year of LNG, with another MTPA (million tonnes per anum) in “one or two subsequent phases.”

Federal, provincial and municipal governments or agencies, First Nations and the general public have the ability to comment on the proposal.

An aerial photo map included in the application shows the footprint of the proposed LNG Canada operation. Although the LNG Canada project is based at the old Methanex plant, the map shows that the LNG plant will take up a much larger area than the original. The old Methanex access road would be widened parallel to the Rio Tinto Alcan smelter and a Cyrogenic Pipeline would cross the Kitimat River estuary to the marine terminal.

The scope of the project includes one possibly controversial item: “Onsite power generation,” where natural gas would be used to power the cooling equipment to turn the gas into LNG.

The assessment will also look the natural gas receiving and production facility; “a marine terminal able to accomodate two LNG carriers each with capacity up to 265,000 cubic metres (approximately 122,000 DWT) and a materials offloading area; supporting infrastructure and the construction facilities.

The environmental assessment will examine air quality, green house gas management, the acoustic environment (the noise created by the project), soil, vegetation, wildlife, freshwater, esturine fish and habitat, marine resources including fish and fish habitat and marine mammals, water and ground water quality.

The economic and social assessment includes infrastructure, land use, “visual quality,” odour, marine transportation and use, community health and well being, archaeological heritage and human health.

The assessment process will also “assess potential cumulative economic, health, social and heritage effects from the Project…interacting cumulatively with similar effects of past, present and future projects activities. The current table of projects to be considered for cumulative effects include the Rio Tinto Alcan Aluminum Smelter and Modernization Project, the Kitimat LNG and Douglas LNG terminals, the possible Enbridge Northern Gateway porject, the new use for the old Methanex and Cenovus operations, the operations at the Sand Hill, the former Moon Bay and current MK Bay Marinas.

Projects further away include LNG and other projects and associated pipelines at Prince Rupert, including expansion of the current ports and the redevelopment of Watson Island. Cruise ship and BC ferry operations will be only considered where they impact the shipping routes. Any forestry operations will also only be considered where they impact the project.

Updated to fix typos, including spelling of Feldhoff

LNG Canada maps air shed study area

Kitimat Airshed Map — Map released by LNG Canada shows the air shed area that the company will study as part of the environmental assessment. (LNG Canada)

Two of the maps filed by the LNG Canada project with provincial and federal environmental assessment agencies look at the air quality problems from the project, including the controversial prospect of cumulative problems from multiple industrial projects in the Kitimat Valley, one of them the RTA Kitimat Modernization Project which will increase sulphur dioxide emissions while decreasing some other emissions.

One map covers what is being called the airshed, in the case of LNG Canada, air quality will be assessed with the LNG facility at its centre. A second map covers the tanker route, and as well as a 40 km square grid around the plant that will also assess Hartley Bay, Kitkatla and Metalkatia which may be impacted by vessel emissions.

As well as scientific data, the assessment will also take into consideration traditional knowledge and traditional use from “aboriginal and other groups.”

The possible cumulative effect on the air quality in the Kitimat valley and surrounding areas has prompted the BC government to commission its own study of the Kitimat airshed.
On Oct 3, the provincial ministries of the environment and gas development announced a $650,000 scientific study “to help inform regulatory and policy development for future industrial activity in the Kitimat area. The goal is to ensure the potential impacts from industrial air emissions are clearly understood prior to new projects being approved and in operation.”
It says

The Kitimat Airshed Impact Assessment Project will look at the cumulative effects of existing and proposed industrial air emissions in the airshed. These include emissions from: an existing aluminium smelter, three proposed LNG terminals, a proposed oil refinery, a crude-oil export facility, and gas-turbine-powered electrical generation facilities. The study will focus on sulphur dioxide and nitrogen dioxide emissions from these facilities.

The study will assess the impact of emissions through a number of scenarios, including their potential effects on water and soil, as well as on vegetation and human health from direct exposure.

BC defines an airshed as

An airshed is generally described as an area where the movement of air (and, therefore, air pollutants) can be hindered by local geographical features such as mountains, and by weather conditions. The most obvious example in British Columbia is a mountain valley. Since air pollution knows no political boundaries, airshed activities may be focused on a single community or on a number of neighbouring communities faced with similar air quality problems and requiring similar action.

The LNG Canada assessment will look at two potential adverse effects, first a change in ambient air quality in the Kitimat airshed or along the marine access route and second any change in acidic deposition pattern in the Kitimat Valley.

The first study will look specifically at estimated levels of “criteria air contaminets” including sulphur dioxide, Nitrogen oxides, carbon monoxide, atmospheric particulate matter and hydrogen sulphide. The particulate matter study will use the international standard of 2.5 micrometres.

The assessment will also study possible cumulative effects on air quality of multiple projects and those projects over time.

LNG Canada air quality map — LNG Canada map shows the marine and land areas that will be studying for air quality. (LNG Canada)

New poll shows some people in Vancouver more in favour of Northern Gateway

A poll released this morning by Insights West, and already being heavily promoted by Enbridge Northern Gateway claims to show: “Opposition to the proposed Enbridge Northern Gateway Pipelines has subsided over the past 10 months in British Columbia, with the province’s residents now being staunchly divided on the project…”

It goes on to report:

In the online survey of a representative sample of British Columbians, support for the proposed Northern Gateway Pipelines stands at 42%, a seven-point increase since an Insights West poll conducted in February. Conversely, opposition to the project has dropped by 14 points, from 61% at the start of 2013 to 47% today.

It is important to note that the level of “strong opposition” to the project has fallen to 29% (down 9 points since February), while “strong support” increased to 16% (+5).

What the press release doesn’t tell you is that opposition to the Northern Gateway, according to the poll, is at 65 per cent in Northern British Columbia, with 50 per cent strongly opposed and 15 per cent somewhat opposed.

The Insight Poll assumes the findings of the online poll are within the usual margin of error

We have assumed that the same margins of error apply as if it were a true unweighted random probability sample with a margin of error of +/- 3.7 percentage points, nineteen times out of twenty.

The problem with the Insight West poll, like all other polls on the Northern Gateway, is that it is weighted toward the population heavy Lower Mainland. The tables released by Insight West show that the online poll had 504 respondents in Vancouver and 25 in Northern BC.

Northwest Coast Energy has spoken to pollsters both on the record and on background and it is clear that the polling entire province distorts the issue along the pipeline route.

The problems with these polls are two fold:

First is the standard polling definition of Northern British Columbia, which is based on Census data. “Northern BC” actually begins at Williams Lake, although most people believe Northern BC begins around Prince George.

Second the polls, due to small population and sample size, do not usually divide northwestern British Columbia, where the opposition is strongest to the Northern Gateway project, and northeastern British Columbia, where the energy industry is a major employer and support for the project is likely stronger.

The tables released by Insight West shows that poll surveyed just 25 people in “Northern British Columbia” but 504 in “Metro Vancouver.”

In a 2012 Ipsos Reid poll conducted on behalf of Enbridge, public affairs spokesperson Kyle Braid said their survey covered 168 people in “Northern British Columbia.” As Northwest Coast Energy News reported at the time:

Braid says the 168 people represents 17% of the sample. These interviews would have been weighted down to about 7% in the overall results to reflect the actual population of the North in BC. The margin of error in the North is about +/-7.6%, 19 times out of 20.

So with a total sample of 749 in the Insight West online poll and just 25 people in Northern BC surveyed, that means the Insight West poll survey of Northern BC covers just 3.3 per cent of the total sample. In contrast, 504 people in Vancouver were surveyed, accounting for 67.2 per cent of the sample.

The Insight West survey does acknowledge that:

British Columbians continue to be of two minds on the Northern Gateway,” continues Canseco. “There is a large proportion of the population that remains concerned with the possibility of oil spills and environmental problems, but the argument about economic benefits has gained traction over the past few months.

The actual tables show that of the 25 people surveyed in Northern BC, 50 per cent “strongly oppose,” (13 out of the 25 people surveyed) 15 per cent “somewhat oppose” Northern Gateway. Twelve per cent “somewhat support” the project, four per cent (one person) “strongly support” the project.

Those numbers, although small, are likely an accurate reflection of the sentiments in northern BC, although a breakdown between the western and eastern parts of Northern BC would have been helpful.

As for the residents of Vancouver, the poll shows that area is divided (as the Insight West news release says) with 22 per cent strongly supporting (119 people) and 27 per cent somewhat supporting the project and 19 per cent somewhat opposed and 27 per cent strongly opposed (123 people).

You can see the poll tables here.

The “growing support” for the pipeline project that Enbridge is promoting from the poll likely shows that their advertising campaign is having some impact on the Lower Mainland but is ineffective in the north.

It is possible to do more accurate polling on energy issues in Northern British Columbia. Earlier this year, a significant number of Kitimat residents reported that they had received calls from a polling company representing TransCanada which will be building the Coastal GasLink pipeline project for LNG Canada, a project where Shell will operate the terminal in Kitimat.

On Monday, when TransCanada officials appeared before District of Kitimat council, they did acknowledge that they have been polling people along the pipeline route so they can understand their concerns. So far, TransCanada has not released the results of that poll.

Kitimat in “horse race” with Australian LNG project Chevron says

Gorgon project in Australia — The Gorgon LNG project in Western Australia. Chevron says Gorgon Project work continues to progress with the installation of the second of three amine absorbers, two condensate stabilization modules and a recycled gas compression module. (Chevron Australia)

Kitimat LNG is in a “horse race” with an LNG project in Western Australia–and at this point, according to the Australian media–Kitimat is winning, even though the Australian Gorgon project is much further ahead while the Kitimat LNG project at Bish Cove hasn’t really started.

The Australian reports come from the same conference call Chevron held with financial analysts last week, when the company said the final investment decision for Kitimat LNG has been postponed to 2014.

The Brisbane Times is quoting Chevron as saying that expansion of the Gorgon “will be in direct competition with exports from North America, which have a cost advantage.”

Chevron has a 47.3 per cent stake in Gorgon. Shell which is developing its own project at Kitimat, LNG Canada, has a 25 per cent stake in Gorgon. ExxonMobil holds 25 per cent.

”In the case of Gorgon train four … we are happy to see both of them move forward,” Chevron vice-chairman George Kirkland told analysts late last week, referring to the competition with Kitimat. ”[There is] a bit of a horse race between them at this point.”

Shipping gas to north Asia from Canada is cheaper than exports from Australia, he said, although the challenge is to find markets for the gas. ”The development cost at Kitimat … may end up being less than in the case of Gorgon,” he said, which ”has the benefit of [being a] brownfield development on the plant side”.

”We’re going to offer volumes … and interest in the plant as a combination,” Mr Kirkland said of the Kitimat marketing plans. ”We think that’s a big advantage.

”Our goal is to maintain our … first-mover advantage … We have had some initial discussions with Asian buyers.”

The Gorgon project in the northwestern area of Western Australia. (Chevron Australia)

According to Wikipedia, the Gorgon area of Western Australia is the site for a number of liquified natural gas projects. The projects are off shore and close to the export terminals, much different from British Columbia where the gas fields are in the Peace River district in the northeast of the province.

Wikipedia says

The Gorgon field is centered about 130 kilometres (81 mi) off the north-west coast of Western Australia, where the water depth is approximately 200 metres (660 ft). Other fields in the group lie to the north, such as Jansz-Io, which covers an area of 2,000 square kilometres (770 sq mi), in a water depth of 1,300 metres (4,300 ft).

Chevron says

It is one of the world’s largest natural gas projects and the largest single resource development in Australia’s history.
The Gorgon Project is developing the Gorgon and Jansz-Io gas fields, located within the Greater Gorgon area, between 130 and 220 kilometres off the northwest coast of Western Australia.
It includes the construction of a 15.6 million tonne per annum (MTPA) liquefied natural gas (LNG) plant on Barrow Island and a domestic gas plant with the capacity to supply 300 terajoules of gas per day to Western Australia.
Gorgon LNG will be off loaded via a 2.1 kilometre long loading jetty for transport to international markets. The domestic gas will be piped to the Western Australian mainland.
The Gorgon joint venture is investing approximately $2 billion in the design and construction of the world’s largest commercial-scale CO2 injection facility to reduce the project’s overall greenhouse gas emissions by between 3.4 and 4.1 million tonnes per year. The Australian Government has committed $60 million to the Gorgon Carbon Dioxide Injection Project as part of the Low Emissions Technology Demonstration Fund.

Gorgon project wharf — A view of construction on the 2.1-km (1.3-mile ) LNG wharf with 24 caissons in place. (Chevron Australia)

In May, Reuters reported that the $52 billion Gorgon liquefied natural gas (LNG) development was 60 per cent complete. At the time, Reuters said Chevron planned to start engineering and design work for an expansion by the end of the year.

Parts of the Gorgon project are in an environmentally sensitive area, Barrow Island, which has been a nature reserve in Australia since 1910.

Wikipedia says

Barrow Island’s ecology. The island is a Class A nature reserve, and home to theflatback turtle (classified as a vulnerable species) and numerous other animals not found on the Australian mainland. Other concerns are related to the adequacy of quarantine procedures on Barrow Island to protect against the introduction of non-endemic species, and risks associated with geological sequestration of CO2.It was reported in November 2011 that native animals on Barrow Island had been accidentally killed daily with a known total of 1550 since construction began.

Chevron says

The Gorgon Project is being undertaken in accordance with strict environmental standards to preserve the island’s ecology.
Central to the Gorgon Project’s commitment to protect the conservation values of Barrow Island is the Quarantine Management System (QMS), which directs
the Project’s quarantine operations. The QMS is the largest non-government quarantine initiative in the world and was considered to be “likely world’s best practice” by the Western Australian Environmental Protection Authority. The Project’s gas processing facilities are being constructed within a 300 hectare ground disturbance limit, which represents 1.3 percent of Barrow Island’s uncleared land area.

Gorgon Project Overview Chevron document pdf

Gorgon-Progress Update August 2, 2013 pdf