Not unexpected news today from Chevron which has announced that its monstrous Gorgon LNG project is another $2 billion over budget and will now cost $54 billion. It was originally budgeted at $37 billion.
It also pushed back its first gas timetable to mid 2015 from late 2014.
This is one reason why we’re seeing the mining capex cliff pushed out. The magnificently expensive seven LNG projects around the country are seeing such regular cost blowouts that it is continuously replenishing the capex pipeline even as it empties.
A uniquely Australian magic pudding!