Newcrest Mining has struck a domestic gas sale agreement with Chevron through to July 2023.
The gold miner will gain access to 16 petajoules of equity domestic gas sourced from the Wheatstone, Gorgon and North West Shelf facilities in Western Australia.
This agreement is the latest to deliver cleaner energy to Western Australia, according to Chevron Australia managing director Al Williams.
Newcrest owns the Telfer gold-copper mine in the Pilbara region, Western Australia.
The company produced 452,000 ounces of gold and 15,000 tonnes of copper at Telfer during the 2019 financial year. The gold-copper concentrates produced from Telfer goes to Port Hedland for export to international smelters.
“Chevron is a leading and growing domestic gas supplier to Australia and we’re proud to deliver new natural gas supply to Western Australian industries, businesses and households,” Williams said.
“As a reliable and cost-effective way to generate electricity, natural gas is a vital energy source for current and future energy needs, powering local jobs, industry and communities.”
The Chevron-operated Gorgon and Wheatstone natural gas facilities will produce 500 terajoules of domestic gas a day for the Western Australian market at full capacity.
This amounts to electricity generation for 4.3 million households.
Chevron manages its one-sixth (16.67 per cent) interest in the North West Shelf joint venture (JV), with partners Woodside Energy, BHP, BP, Japan Australia LNG and Shell Australia holding the remaining in equal proportions.