Chevron Pty Ltd has signed a domestic gas sale agreement with BHP Billiton Nickel West Pty Ltd for the delivery of natural gas from the Chevron-operated Wheatstone domestic gas facility.
Commencing next month, Chevron will supply BHP Nickel West with 22 Petajoules of equity domestic gas over the 3.5-year term.
The Chamber of Minerals and Energy of Western Australia (CME) Chief Executive, Paul Everingham, said access to reliable and affordable energy would help support WA’s economic growth, which was essential following the devastating impact of COVID-19.
“The commencement of domestic gas deliveries from Chevron’s natural gas facilities in the Pilbara has significantly benefited Western Australian households and businesses, as it provides a cost-effective supply of energy for decades,” he said.
“Western Australia enjoys a solid reputation for its secure domestic gas supply and this latest agreement will further strengthen our global standing.”
“Thanks to WA’s strong liquefied natural gas (LNG) market, local businesses and industry are fortunate to access an affordable and consistent supply of energy well into the future.”
The Chevron-operated Wheatstone Project is one of Australia’s largest resource developments and the nation’s first LNG hub.
Wheatstone’s onshore facilities are located 12 kilometres west of Onslow on the Pilbara coast of Western Australia. The foundation project consists of two LNG trains with a combined capacity of 8.9 million tonnes per annum, and a domestic gas plant.
The project was sanctioned in late 2011, with its first shipment of LNG announced in October 2017.
The Wheatstone Project is a joint venture between Australian subsidiaries of Chevron (64.14 per cent), Kuwait Foreign Petroleum Exploration Company (KUFPEC) (13.4 per cent), Woodside Petroleum Limited (13 per cent), and Kyushu Electric Power Company (1.46 per cent), together with PE Wheatstone Pty Ltd, part-owned by JERA (8 per cent).
