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Chevron begins LNG production from $34bn Wheatstone project in Australia

EBR Staff Writer Published 10 October 2017

Chevron and its partners have commenced liquefied natural gas (LNG) production from the $34bn Wheatstone Project in Western Australia.

The Wheatstone project comprises two LNG trains which have a combined capacity to produce 8.9 million metric tons per annum (MTPA) and a domestic gas plant.

Chevron chairman and CEO John Watson said: "First LNG production is a significant milestone and is a credit to our partners, contractors and the many thousands of people who collaborated to deliver this legacy asset.

"Wheatstone adds to our legacy gas position in Australia that will be a significant cash generator for decades to come."

Located 12km west of Onslow, the LNG facility processes natural gas which is produced from the Chevron-operated Wheatstone and Iago fields.

Chevron operates the project with 64.14% stake. The other  partners include Kuwait Foreign Petroleum Exploration with 13.4% stake, Woodside Petroleum 13%, Kyushu Electric Power 1.46% and PE Wheatstone, part owned by JERA 8%.

Kuwait Foreign Petroleum Exploration Company (KUFPEC) CEO Shaikh Nawaf Saud Nasir Al-Sabah said: “This is a landmark moment for KUFPEC as we deliver on our strategy.  The Wheatstone Project will provide us large-scale, stable production and strong cashflows for the next two decades.”

The Wheatstone LNG joint venture partners are planning to commence LNG production from Train 2 in six to eight months.

In 2016, Chevron signed a seven-year agreement with energy retailer Alinta Energy for the supply of 20 petajoules of gas per annum from the Wheatstone project, starting from 2020.


Image: The Chevron-operated Wheatstone project comprises two LNG trains. Photo: courtesy of Chevron Australia Pty Ltd ("Chevron").