Chevron Corporation today announced the signing of agreements with Shell Development (Australia) Pty Ltd to bring Shell into the Chevron-operated Wheatstone Project as a natural gas supplier and equity participant.
George Kirkland, vice chairman, Chevron Corporation , said, “ Chevron is pleased to welcome another participant into the Wheatstone Project. The Wheatstone hub will provide a reliable new source of energy to Australia and the region. It will also further enhance Chevron’s position as a leading supplier of liquefied natural gas (LNG) in Asia-Pacific .”
Under the unitization agreement with Chevron’s Australian subsidiaries, Shell will assume an 8 percent participating interest in the Wheatstone and Iago natural gas fields in the Chevron-operated permits WA-253-P, WA-17-R and WA-16-R, located offshore northwest Australia.
The Wheatstone and Iago gas fields will supply Trains 1 and 2 of the Wheatstone Project, located onshore at Ashburton North in Western Australia.
Shell will also assume a 6.4 percent participating interest in the project facilities, with Chevron remaining project operator.
Chevron Australia managing director, Roy Krzywosinski , said front-end engineering and design (FEED) activity on the Wheatstone Project is nearing completion.
“ The Wheatstone Project is set to become one of Australia’s largest resource projects and Australia’s first LNG hub. A final investment decision is expected in the second half of this year once environmental approvals and other associated agreements are finalized with various levels of government. ”
The first phase of the Wheatstone Project consists of two LNG processing trains with a combined capacity of 8.9 million tonnes per annum (MTPA) and a domestic gas plant.
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Source: Chevron, April 10, 2011;