Gorgon gas project cost to blow out by $US52 billion ChevronTexaco's Gorgon gas development of Barrow Island in a 2003 photo. AUSTRALIA'S biggest gas project has suffered another multi-billion-dollar cost blowout and delay, becoming the latest in a string of developments beset by similar problems. The cost of Gorgon, the liquefied natural gas project spearheaded by US energy giant Chevron, has blown out from $US52 billion ($57.7 billion) to $US54 billion. Chevron has also warned production at site is now expected to start in mid 2015 instead of the first quarter. Despite those issues, the project's economics remained attractive, Chevron vice-chairman George Kirkland said. "We continue to make steady progress against key project milestones and are applying lessons learned to our Wheatstone development which is almost 25 per cent complete," Mr Kirland said. He said the group had long-term deals to sell about three quarters of the gas to be produced at the two sites. Wheatstone is smaller, but still a major project at a development cost of $29 billion. Both projects are in Western Australia. At full capacity, they will produce a combined 400,000 barrels a day at full capacity. Chevron has previously complained about a regulatory environment that is leading to wage and other cost problems. The revelation yesterday comes after the company warned last December that the development bill had ballooned from $US37 billion to $US52 billion. LNG is tipped to replace iron ore as Australia's top-earning export within two decades. The $200 billion suite of seven LNG projects being built have been marred by regular cost blowouts and delays, and the development of rival offshore projects in countries such as Canada. Chevron's partners at Gorgon are Shell and ExxonMobil. Maritime Union of Australia WA state secretary Christy Cain said while Chevron had highlighted high labour costs as contributing to cost blowouts, improved management practices would lead to savings.