Chevron Signs Wheatstone Domestic Gas Agreement
Perth, Western Australia, April 11, 2016 – Chevron (TAPL) Pty Ltd today announced the signing of a domestic gas sales agreement with Alinta Energy for the delivery of natural gas from the Chevron-operated Wheatstone Project near Onslow, Western Australia.
Under the agreement, Chevron will supply Alinta Energy with 20 Petajoules per year of its equity domestic gas for seven years starting in 2020.
Chevron Australia managing director Roy Krzywosinski said Wheatstone is a significant new source of energy for Western Australia and will be a leading domestic gas supplier for many years to come.
"We are committed to being a safe, competitive and reliable supplier of domestic gas for Western Australia’s future energy needs and pleased to strengthen our longstanding relationship with Alinta Energy."
“At full capacity, the Wheatstone Project has the capacity to produce 200 terajoules per day (TJ/d) of domestic gas for the Western Australian market.”
“This agreement is an important step in Chevron's rapidly expanding domestic gas business in Western Australia and the establishment of our leading domestic gas portfolio across the Wheatstone, Gorgon and North West Shelf Projects,” Krzywosinski said.
Wheatstone is expected to deliver domestic gas to the Western Australian market in 2018.
The Wheatstone Project is under construction near Onslow, Western Australia and will consist of two LNG trains with a combined capacity of 8.9 MTPA and a 200 TJ/d domestic gas plant. Gas from the Wheatstone domestic gas plant is being marketed separately by the Wheatstone Project joint venture participants and will be delivered from Onslow via pipeline to an inlet point on the Dampier Bunbury Natural Gas Pipeline.
Chevron currently supplies 10 percent of the Western Australian gas market through its participation in the North West Shelf Project.
The Wheatstone Project 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 TEPCO (8 percent).
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 leads the development of the Gorgon and Wheatstone natural gas projects; manages its equal one-sixth interest in the North West Shelf Venture; operates Australia’s largest onshore oilfield on Barrow Island, is a significant investor in exploration offshore Australia and provides operational support to exploration assets operated by its affiliates in New Zealand.
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