Chevron has signed an agreement to deliver natural gas from its A$29bn Wheatstone Project near Onslow, Western Australia, to energy retailer Alinta Energy.
Under the agreement, the company will start supplying 20 Petajoules per year of its equity domestic gas to Alinta Energy beginning 2020 for a period of seven years.
Chevron Australia managing director Roy Krzywosinski said Wheatstone is a new source of energy for Western Australia.
"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."
The Wheatstone project is currently under construction and will have two LNG trains in addition to a 200 TJ/d domestic gas plant.
Together, the trains will have a capacity of 8.9 MTPA.
Joint venture (JV) participants of Wheatstone will market the gas from the domestic plant.
Gas is planned to be delivered from Onslow with the help of a pipeline to an inlet point on the Dampier Bunbury natural gas pipeline.
At present, Chevron supplies 10% of the Western Australian gas market through its share in the North West Shelf project.
Chevron has a 64.14% stake in the project. Remaining partners are Kuwait Foreign Petroleum Exploration (13.4%), Woodside Petroleum (13%), and Kyushu Electric Power (1.46%), together with PE Wheatstone, part owned by Tepco (8%).
Image: Chevron Australia managing director Roy Krzywosinski with Alinta Energy CEO Jeff Dimery. Photo: courtesy of Chevron Corporation.
