Chevron positioned to meet growing demand for natural gas in Asia Pacific region
PERTH, Western Australia, 31 October 2017 – Chevron Australia today announced its first shipment of liquefied natural gas (LNG) has departed from the Wheatstone Project located 12 kilometres west of Onslow in Western Australia. The cargo will be delivered to one of Chevron’s foundation buyers, JERA for delivery into Japan.
Chevron Australia Managing Director Nigel Hearne said, “The first shipment of LNG from the Wheatstone Project signifies our commitment to be a safe and reliable long-term supplier of cleaner-burning natural gas for our customers in the Asia-Pacific region.”
“The first Wheatstone cargo also represents the significant contribution of our partners, contractors and suppliers and efforts of thousands of people onsite, throughout Australia and around the world during the engineering, construction and operations phases.”
Hearne continued, “The Wheatstone Project is Australia’s first third-party natural gas hub enabling future development of the vast natural gas resources offshore Western Australia. Through collaboration our goal is to efficiently develop and commercialise this resource.”
The Wheatstone Project is making a significant economic contribution to the long-term future of Australia, and since 2009 has spent more than $20 billion on local goods and services through 300 different Australian companies and created more than 7,000 jobs during construction.
At full capacity, the Wheatstone Project’s two train LNG facility is expected to contribute around six percent of the Asia Pacific region’s total future LNG production, delivering 8.9 MTPA of LNG for export to customers in Asia. The Project’s domestic gas plant also has the capacity to produce 200 terajoules per day of domestic gas for the Western Australian market.
- Wheatstone first LNG production was achieved on October 9, 2017. More.
- Approximately 85 percent of Chevron’s Australian subsidiaries’ equity LNG from the Gorgon and Wheatstone projects is covered by sales and purchase agreements with premier customers.
- The first Wheatstone LNG cargo will be delivered by the Asia Venture, one of six new state-of-the-art LNG carriers recently added to Chevron’s operated fleet.
- LNG is a significant fuel for power generation across the Asia-Pacific region.
- A single Chevron cargo of LNG from the Wheatstone Project could power Japan for ~ 9 hours.
- Once Wheatstone is fully operational, Chevron is expected to be Australia's largest liquefaction owner with 15.8 million tonnes per annum.
- At full capacity, the Gorgon and Wheatstone facilities have the capacity to produce 500TJ/d of domestic gas, around 50 percent of current supply in WA.
- Recognised for environmental excellence and an innovative solution to reducing environment impacts, the Wheatstone micro-tunnel creates a shore-crossing for the 225km gas pipeline.
- More than $250 million has been committed to social and critical infrastructure projects in Onslow, which include upgrading community facilities, education and health services, roads, and power and water infrastructure.
The Chevron-operated Wheatstone LNG facility is a joint venture between Australian subsidiaries of Chevron (64.14 percent), Kuwait Foreign Petroleum Exploration Company (KUFPEC) (13.4 percent), Woodside Petroleum Limited (13 percent), and Kyushu Electric Power Company (1.46 percent), together with PE Wheatstone Pty Ltd, part owned by JERA (8 percent). Chevron holds an 80.2 percent interest in the offshore licenses containing the Wheatstone and Iago fields.
Chevron is one of the world's leading integrated energy companies and through its Australian subsidiaries, has been present in Australia for more than 60 years. With the ingenuity and commitment of thousands of workers, Chevron Australia operates the Gorgon and Wheatstone LNG and domestic gas projects; manages its equal one-sixth interest in the North West Shelf Venture; operates Australia’s largest onshore oilfield on Barrow Island; and is a significant investor in exploration. www.chevronaustralia.com
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