Chevron Australia markets and sells natural gas into the Western Australian domestic gas market for industrial, commercial and household use.
Securing WA's Energy Future
Chevron currently supplies 10 percent of the Western Australian gas market through its participation in the North West Shelf DomGas joint venture. With significant equity in Gorgon and Wheatstone, Chevron forecasts that its share of the Western Australian wholesale domestic gas market will increase substantially and Chevron will become one of the major suppliers of domestic gas in the State. We welcome this opportunity to be a key and growing participant in the evolving Western Australian market.
The North West Shelf Project located on the Burrup Peninsula in Western Australia, began supplying domestic gas in 1984 and currently supplies about 65 per cent of the state's needs. Chevron is a foundation participant in NWSV – Australia's first LNG project. Since delivery of its first domestic gas supplies the project has a track record as a safe, competitive and reliable supplier of domestic gas. North West Shelf Gas is an agency established by the NWSV to market domestic gas to gas distribution/aggregation companies, electricity producers and major industrial customers in Western Australia.
The Gorgon Project, located on Barrow Island in Western Australia, will include a domestic gas plant capable of producing 300 terajoules of domestic gas per day. Domestic gas will be transported to the mainland via a pipeline that is more than 90 kilometres long, connecting into the existing Dampier to Bunbury Natural Gas Pipeline. In November 2011, the Gorgon Project signed two significant long-term domestic gas sales contracts with Western Australia's largest energy retailer, Synergy and the State's leading energy generator, Verve Energy. Domestic gas from the Gorgon Project is scheduled to come on stream in 2016.
Construction on the Wheatstone Project, near Onslow in Western Australia commenced in late 2011. The Wheatstone Project includes the development of a 200 terajoules per day domestic gas plant of which Chevron's interest equates to an equity share of production of approximately 128 terajoules per day. Chevron Natural Gas Australia (CNGA), Chevron's marketing entity for equity domestic gas, is separately marketing Chevron's share of domestic gas from the Wheatstone Project. CNGA is marketing this gas through direct engagement with a broad group of prospective customers. The intention of these engagements is to gain a better understanding of prospective customers' operations, gas requirements and potential business opportunities and how Wheatstone domestic gas can meet their requirements. Through this process CNGA anticipates contracting Wheatstone domestic gas to meet market demand under a range of contractual arrangements that best meet supply and demand needs. Domestic gas production is expected to commence in 2018.