Name of the Project
Wheatstone liquefied natural gas (LNG) project.
Location
Australia.
Client
The project is a joint venture between Australian subsidiaries of Chevron (64.1%); Kuwait Foreign Petroleum Exploration Company (KUFPEC) (13.4%); Woodside Petroleum (13%); PE Wheatstone, which is partly owned by TEPCO (8%); and Kyushu Electric Power Company (1.46%).
Project Description
The Wheatstone LNG project, located at Ashburton North, 12 km west of Onslow, in Western Australia, will become one of the country’s largest resource projects, providing greater security of supply and significant economic benefits, including employment, government revenue and opportunities for local businesses.
The project plans to develop a 25-million-ton-a-year LNG plant. The foundation phase consists of two LNG processing trains with a combined capacity of 8.9-million tons a year, a domestic gas plant and associated offshore infrastructure, including the processing platform, subsea equipment, drilling and an export trunkline.
The LNG trains will be supplied with gas from the neighbouring Wheatstone and Iago gasfields.
The domestic gas plant will have the capacity to equal about 15% of LNG sales, with domestic gas to be delivered to the Western Australian market through the Dampier-to-Bunbury natural gas pipeline.
The project will require the installation of gas-gathering infrastructure, export and processing facilities in Commonwealth and State waters, and on land, as well as a shipping access channel and a new industrial port facility.
Jobs to be Created
Not stated.
Value
$34-billion.
Duration
A final investment decision to proceed with the Wheatstone project was made in September 2011, with construction started in December that same year.
First gas is expected in mid-2017.
Latest Developments
US energy major Chevron has warned of a $5-billion cost blow-out at the Wheatstone liquefied natural gas LNG project.
In its quarterly results announcements released at the end of October, Chevron noted that the delay in module delivery at Wheatstone had resulted in the project costs increasing from $29-billion originally estimated in 2011 to $34-billion.
The company in February warned of a six-month delay in first production at Wheatstone, which is now expected for mid-2017.
Project partner Woodside has said that the company is reviewing the cost update, with the company’s initial view being that it will result in an increase of less than 8% to Woodside’s total capital cost for the project.
Woodside in 2015 spent $2.75-billion to buy Apache’s 13% interest in the Wheatstone project and a 65% interest in the Julimar-Brunello upstream gas development.
Key Contracts and Suppliers
Bechtel Oil, Gas & Chemicals (onshore front-end engineering and design).
On Budget and on Time?
The project has been delayed by six months.
Contact Details for Project Information
Bechtel (Australia), tel +61 7 3167 5000 or fax +61 7 3167 5001.
Chevron Australia, tel +61 8 9216 4000, fax +61 8 9216 4166 or
email gorgon.info@chevron.com; or senior communications adviser Nicole Hodgson, tel +61 8 9216 4485 or email nhodgson@chevron.com.
Kufpec, tel +965 183 6000, fax +965 249 5 1818 or email KUFPEC@KUFPEC.com.
Woodside Petroleum, tel +61 8 9348 4000 or fax +61 8 9214 2777.