Chevron seals new Australian domestic gas deal

Chevron’s Australian unit has signed a new long-term deal with aluminum producer Alcoa to deliver domestic natural gas from its Gorgon and Wheatstone LNG projects and the Woodside-led NWS JV.

Starting January 1, 2028, Chevron Australia will supply Alcoa with a total of 130 petajoules of gas over a 10-year term from across the company’s equity interests in the Gorgon and Wheatstone facilities and the NWS JV.

Gorgon and Wheatstone’s domestic gas facilities have a combined capacity to produce 530 terajoules of gas per day for the Western Australia market, which is about half of the state’s gas supply, while Chevron retains a one-sixth interest in the NWS JV.

“As one of WA’s largest domestic gas producers, we’re proud to continue our relationship with Alcoa’s WA operations which we’ve supplied from our portfolio since 2020,” Chevron Australia managing director Mark Hatfield said.

“Our significant investment in WA’s natural gas sector, including our share of the more than A$80 billion invested in Gorgon and Wheatstone, has powered the development of WA’s resources industry and continues to enable the long-term supply of reliable energy to the state,” he said.

“From fuelling high heat manufacturing processes, such as in alumina, to providing a flexible energy source for electricity generation, reliable gas supply plays a crucial role in supporting WA’s energy security and economic development.”

Launched in 2016, the Gorgon LNG plant has three trains and a production capacity of about 15.6 mtpa.

The project is a joint venture of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), MidOcean Energy (1 percent), and also Jera (0.417 percent).

On the other hand, the Wheatstone project consists of two LNG trains with a combined capacity of 8.9 mtpa, and the domestic gas plant.

The project was sanctioned in late 2011, with first shipment of LNG announced in October 2017.

Chevron operates the project with a 64.14 stake and other shareholders include KUFPEC (13.4 percent), Woodside (13 percent), and Kyushu Electric (1.46 percent), together with PE Wheatstone, part-owned by Jera (8 percent).

In addition, Australian LNG player Woodside and its partners in the NWS JV recently received environmental approval from the Western Australian government for the North West Shelf project extension

The plant has five LNG trains, launched between 1989 and 2008, with a capacity of 16.9 million tonnes per year, domestic gas trains, condensate stabilization units, and LPG units.

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