Chevron announced that its Australian subsidiary and partners will proceed with the construction of the Wheatstone LNG Project in Western Australia. The foundation phase of the Wheatstone Project is estimated to cost US$29 billion (AU$29 billion) and consists of two LNG processing trains with a combined capacity of 8.9 million tons per annum (MTPA), a domestic gas plant and associated offshore infrastructure. First gas is planned for 2016.
The offshore scope has three sections:
- the subsea component, which is wells and associated infrastructure to tie-back the wells to the processing platform;
- the processing platform, which is divided into the substructure and the topsides; and
- the export trunkline that delivers the gas onshore for further processing at Ashburton North.
The Wheatstone Project was granted final federal government approval for a 25 MTPA LNG development, paving the way for future expansion opportunities.
The Wheatstone onshore foundation project, located at Ashburton North, 7.5 miles (12 kilometers) west of Onslow on the Pilbara Coast, is a joint venture between the Australian subsidiaries of Chevron (operator 73.6%), Apache (13%), Kuwait Foreign Petroleum Exploration Company (KUFPEC 7%) and Shell (6.4%).
The foundation project will be fed with natural gas from the Wheatstone and Iago fields, which are operated by an Australian subsidiary of Chevron in a joint venture with Shell and represents 80 percent of the plant’s foundation capacity.
The Wheatstone hub concept was developed to provide foundation infrastructure for the commercialization of Chevron’s vast natural gas resources as well as a destination for third-party gas. Under the hub concept, Apache and KUFPEC will provide the remaining 20% of the natural gas from their Julimar and Brunello fields. Development of the two third-party fields is not included in the estimated project cost.
About 60% of Chevron’s equity LNG off-take is presently covered under binding long-term agreements. Discussions are continuing with potential customers to increase long term off-take to more than 80 percent and to sell down equity.