media statement

Chevron signs new domestic gas agreement

PERTH, Western Australia, 12 December 2018 – Chevron (TAPL) Pty Ltd today announced the signing of a domestic gas sales agreement with Alcoa of Australia Limited (Alcoa) for the delivery of natural gas from Chevron’s leading domestic gas portfolio across the Wheatstone, Gorgon and North West Shelf facilities.

Starting in 2020, Chevron will supply Alcoa with a total of 64 Petajoules of equity domestic gas over the term of the agreement.

Chevron Australia managing director Nigel Hearne welcomed the agreement and said cleaner-burning natural gas from Chevron’s facilities play a vital role in meeting current and future energy needs of Western Australia.

“As a leading and growing domestic gas supplier, Chevron is committed to delivering reliable, affordable and cleaner-burning energy to Western Australian businesses and households.”

At full capacity, the Chevron-operated Gorgon and Wheatstone natural gas facilities will be able to produce 500 terajoules per day of domestic gas for the Western Australian market –enough to generate electricity for 4.3 million households.

Hearne added: “Gorgon and Wheatstone domestic gas represents a significant new source of energy for Western Australia which has been underpinned by our investment in LNG. This will have far-reaching benefits for the local economy through reliable supplies, jobs, community investment and government revenues for the next 40-plus years.”

Since late- 2016, Chevron has been supplying Gorgon domestic gas into the WA market. This is only set to increase with Wheatstone domestic gas sales expected to commence early next year. The two facilities alone will have the capacity to provide around 50 percent of WA’s current domestic gas supply.

The high penetration of natural gas in WA’s electrical power generation is the reason WA’s electricity generation has some of the lowest greenhouse gas emissions intensity in Australia, around 15 percent below the national average.

Chevron Natural Gas Australia (CNGA) is Chevron's marketing entity for equity domestic gas.

Fast facts:

  • For more than 25 years, Chevron has been supplying domestic gas from its one-sixth interest in the North-West Shelf project.
  • As a flexible fuel, natural gas can be used as a cleaner alternative to power Australia's most vital industries and manufacture products essential to modern life. 
  • Chevron is working to increase the supply of natural gas into Australia and international energy markets to help realise the objective of affordable solutions for reducing greenhouse gas emissions. 
  • When full life cycle emissions are considered, the emissions associated with electrical power generation from natural gas, supplied as either domestic gas or LNG, are considerably lower, almost half – than the most common base load fuels.
  • With gas generation plants able to be rapidly turned on and off, natural gas is ideally suited to complement and respond to changes in renewable sources.
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 natural gas facilities; 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. 


This press release contains forward-looking statements relating to Chevron’s operations that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on schedule,” “on track,” “is slated,” “goals,” “objectives,” “strategies,” “opportunities” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this report. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices; changing refining, marketing and chemicals margins; the company’s ability to realize anticipated cost savings and expenditure reductions; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; technological developments; the results of operations and financial condition of the company’s suppliers, vendors, partners and equity affiliates, particularly during extended periods of low prices for crude oil and natural gas; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s operations due to war, accidents, political events, civil unrest, severe weather, cyber threats and terrorist acts, crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries, or other natural or human causes beyond its control; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic and political conditions; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential liability resulting from other pending or future litigation; the company’s future acquisition or disposition of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; material reductions in corporate liquidity and access to debt markets; the impact of the 2017 U.S. tax legislation on the company’s future results; the effects of changed accounting rules under generally accepted accounting principles promulgated by rulesetting bodies; the company’s ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 19 through 22 of the company’s Annual Report on Form 10-K. Other unpredictable or unknown factors not discussed in this report could also have material adverse effects on forward-looking statements.