Australia's $41.3bn Gorgon LNG project successfully negotiated another hurdle recently, with the news that government agreed to accept joint liability for storing generated CO2.

Recent weeks saw the national and Western Australian state government agree to accept joint liability for storing carbon dioxide from the scheme.

According to a report by Reuters, Prime Minister Kevin Rudd said the two governments would accept any liabilities arising from the carbon storage in geological formations under Barrow Island, off the Western Australian coast.

Such a decision is thought to highlight the perceived significance of the Gorgon LNG project’s significance to the Australian economy.

Chevron holds a 50% stake and is the operator of the project, while Royal Dutch Shell Plc and Exxon Mobil Corp are each believed to hold 25%.