Chevron Says Future Australian LNG Projects May Be at Risk
Australia's liquefied natural gas industry is at cross-roads because of cost increases and poor labour productivity in the country, Chevron's Australia Chief Executive Roy Krzywosinski said Thursday.
The country's LNG industry has around A$180 billion of committed projects and potentially a further A$100 billion of projects that could be "enabled" depending on markets and cost challenges, Krzywosinski was quoted by Wall Street Journal as saying.
He said that Australian government needs to begin to look at issues such as labour costs and taxes, the report said.
If reforms aren't forthcoming, some LNG projects may start "falling off, and investment will dry up", Mr. Krzywosinski added.
Chevron is building the huge Gorgon and Wheatstone gas export projects in Western Australia state.