Sydney Morning Herald: Chevron's Gorgon the latest LNG mega-project hit by US-fuelled gas boom

US oil major Chevron is struggling to lock-in 20-year sales contracts for its Gorgon liquefied natural gas (LNG) export plant in Australia, the world's most expensive, as buyers spoiled for choice from new suppliers hold out for cheaper deals.

The high level of unsold LNG shows how the US shale gas boom has played havoc with major investments now coming to fruition in Australia, and threatens to undermine the industry's traditional sales model where projects tie up forward sales in long-term contracts.

Nearly $US200 billion worth of gas projects are nearing completion in Australia, with seven LNG projects due to start exporting gas between late 2014 and 2017, making the country the world's largest producer of the fuel.

As well as Gorgon, other projects include BG Group's Curtis Island, Conoco and Origin's Australia Pacific, Inpex's Ichthys, Shell's Prelude and Santos' Gladstone.

But with LNG exports from the United States due to begin next year, buyers are more cautious about locking in 20-25 year contracts. For the Australian mega-projects, already stung by soaring costs, this means more uncertainty. MORE