Chevron has announced its plan to increase its domestic gas production from the Wheatstone gas field in Western Australia, from 205 terajoules (TJ) to 215 TJ per day, following technical and plant modifications.
“Plant modifications and subsequent high-rate production trial undertaken over the past year had confirmed the facility was able to maintain safe and reliable domestic gas production at an increased rate,” Chevron Australia Managing Director Mark Hatfield said in a statement.
The Chevron-operated Wheatstone Project is one of Australia’s largest resource developments and the nation’s first liquefied natural gas (LNG) hub – providing greater security of energy supply as well as significant economic benefits to the country.
Australia is the world’s biggest LNG exporter and Woodside Energy’s (WDS.AX) Northwest Shelf, along with Chevron’s Gorgon and Wheatstone projects, supply about one-tenth of the global market.
The Wheatstone project has added $180 billion to Australia’s gross domestic product (GDP). Moreover, the Wheatstone project along with the Morgan’s, another major natural gas project, have added more than $60 billion to the Australian economy, with more than 900 contracts awarded to Australian companies.
The Wheatstone project is a joint venture between Australian subsidiaries of Chevron (64.14%), Kuwait Foreign Petroleum Exploration Company (KUFPEC) (13.4%), Woodside Energy Group Ltd (13%), and Kyushu Electric Power Company (1.46%), together with PE Wheatstone Pty Ltd, part-owned by JERA (8%).
The Wheatstone gas field’s offshore processing platform is located in 70 m of water, about 225km from the coast.
Since construction began on the Wheatstone Project, more than $455 million has been spent with local Onslow businesses and organizations for site construction contracts and town-based services such as transport, catering, venue hire, and general supplies.
However, currently, Chevron is facing some issues regarding the work environment where the trade unions, representing offshore platform workers at Australian liquefied natural gas (LNG) providers, threaten industrial action demanding better wages and work conditions.
Accordingly, a final vote is set for Thursday where workers will decide whether they would allow the unions to call strikes at Chevron’s Wheatstone and Gorgon LNG plants.
