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. 

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