Chevron gave the green light for a $29 billion liquefied natural gas project in Australia in its bid to satisfy LNG-hungry Asia-Pacific nations.
A Chevron Australian unit will build the Wheatstone Project in Western Australia.
“This project, along with Gorgon LNG, is well-positioned to provide a large, secure energy supply to meet growing demand in the Asia-Pacific region, and to place Chevron as one of the world’s leading LNG suppliers,” said Chevron’s Chairman and Chief Executive John Watson.
The project will consist of two LNG processing trains with a capacity of 8.9 million tons a year, a gas plant, and related offshore infrastructure.
The federal government’s approval of 25 million tons a year of LNG development at Wheatstone leaves the door open for more expansion opportunities.
The Wheatstone project is a joint venture between the Australian subsidiaries of Chevron, Apache, Kuwait Foreign Petroleum Exploration Company (KUFPEC) and Shell. Their respective stakes in the venture are 73.6%, 13%, 7% and 6.4%.
Two weeks ago, Chevron, Apache and KUFPEC said they will supply up to 700,000 metric tons per year of liquefied natural gas to Japan’s Kyushu Electric for up to 20 years.