O'Reilly told the World Gas Conference in Amsterdam yesterday that Chevron was confident the outcome of an environmental review would balance environmental and economic concerns and the project would proceed.

He added that Chevron was currently discussing gas sales with three un-named Japanese gas utilities and this was moving the project closer to realisation.

Also yesterday, both Australian major federal political parties said Gorgon, on WA's environmentally sensitive Barrow Island, should go ahead.

Environment Minister Ian Campbell said good management was needed, rather than halting the development, while Labor leader Kim Beazley said Gorgon must go ahead to reduce Australia's reliance on Middle Eastern oil.

With the Federal Environment Minister and WA Premier Alan Carpenter backing Gorgon, the project will go ahead despite the WA Environmental Protection Authority's concerns.

Operator Chevron holds a 50% stake in Gorgon, while Royal Dutch Shell and ExxonMobil each have a 25% stake in the field.