Chevron starts LNG production at Wheatstone

Image credit: Chevron

Chevron has launched production of liquefied natural gas (LNG) at the Wheatstone project in Western Australia.

The Wheatstone project’s two-train LNG facility will supply 8.9 million tonnes of LNG to Asian customers a year.

Chevron, which holds a 64.14 per cent stake in the joint venture project, expects to ship first cargo from Wheatstone in the coming weeks. Wheatstone train two has been forecast to be in production in the next six to eight months.

Chairman and chief executive John Watson said the production milestone was credit to the company’s partners, contractors and the many thousands of people who collaborated to deliver the asset.

“Wheatstone adds to our legacy gas position in Australia that will be a significant cash generator for decades to come,” Watson said.

The American oil and gas company launched construction of the $29 billion project in late 2011. It has approval to expand production at the operations to 25 million tonnes of LNG a year.

Wheatstone’s other stakeholders include Kuwait Foreign Petroleum Exploration (13.4 per cent), Woodside Petroleum (13 per cent), Kyushu Electric Power (1.46 percent), and PE Wheatstone (8 percent).

The operation will contribute more than 13 million barrels of oil equivalent (MMboe) to Woodside’s annual output once it is fully operational, the Perth-based company reported.

Woodside CEO Peter Coleman said the safe start-up of Wheatstone was one of its priorities for 2017.

“We will continue to support the operator in optimising lifting costs and increasing production volumes to maximise the value of our investment,” Coleman said.

The LNG facility, 12km west of Onslow in the state’s north west, processes natural gas from the Chevron-operated Wheatstone and lago fields.