Chevron announced a contract with TechnipFMC to supply Subsea 2.0 production systems for the Gorgon Stage 3 brownfield LNG expansion in Western Australia. The agreement, valued between $75 million and $250 million, adds a significant revenue stream to Chevron’s Australian operations.
Gorgon Stage 3, which received a final investment decision on December 5, 2025, will connect the Geryon and Eurytion natural‑gas fields to existing infrastructure, adding six wells and expanding the LNG train capacity. The new subsea systems will use TechnipFMC’s first 7‑inch series of Subsea 2.0 horizontal trees, designed to reduce lead times and improve operational predictability.
The deal underscores Chevron’s continued investment in its Australian LNG portfolio, complementing the larger Gorgon LNG facility and domestic gas plant. It also strengthens the long‑standing partnership with TechnipFMC, which has supplied subsea technology to Gorgon since the project’s inception.
By deploying standardized, modular Subsea 2.0 platforms, Chevron expects to lower capital and operating costs, accelerate project execution, and enhance schedule certainty. The contract aligns with Chevron’s strategy to focus on low‑cost, high‑margin assets, although it is unrelated to its Guyana or Gulf of America operations.
Analysts note that the contract adds a predictable revenue stream and supports Chevron’s broader LNG growth strategy in Australia, positioning the company to meet rising global gas demand while maintaining cost discipline.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.