Wheatstone T2 Starts LNG Production (Update)

Adds comments by partner Woodside

The Wheatstone LNG project in Western Australia has begun producing LNG from its second train, operator Chevron said June 15.

Chevron Australia’s managing director Nigel Hearne said the company is now the operator of a five train LNG business in Australia and the country’s largest liquefaction owner. The news follows Wheatstone’s first train beginning production on October 9, and the successful delivery of its first cargo one month later.

“With the Chevron-operated Wheatstone and Gorgon LNG facilities now operational, we are delivering a significant new source of energy for customers in the region, as well as contributing to significant levels of investment in the Australian economy,” Hearne said.

Wheatstone is expected to produce 8.9mn metric tons per year over an estimated 30 years of operation. Its domestic gas supply plant is progressing and is due online later in the year, added Chevron.

Wheatstone is a joint venture between Australian subsidiaries of Chevron (64.14%), Kuwait Foreign Petroleum Exploration Company, Kufpec (13.4%), Australia's Woodside (13%), and Japan's Kyushu Electric  (1.46%), together with PE Wheatstone, part owned by Jera (8%). At full capacity, Wheatstone’s two trains are expected to contribute about 6% of the Asia Pacific region’s future LNG production, Chevron says.

Through its interest in Wheatstone, Gorgon and the North-West Shelf Project in Western Australia, Chevron has 15.8mn metric tons per year of production capacity.

Woodside CEO Peter Coleman said the safe start-up of Train 2 demonstrated the success of the project as part of Woodside’s growth strategy, building on more than 30 years of experience delivering domestic gas and LNG to Western Australia and the world.

In support of Wheatstone’s production, Woodside is progressing concept definition for Phase 2 of the Julimar-Brunello Project which will tie-back the Julimar field to the existing Brunello subsea infrastructure that is connected to the Wheatstone offshore platform. Coleman said the next milestone for Wheatstone will be successful commissioning of the domestic gas plant, targeted for 2H2018, adding to Western Australia’s strong and secure energy supply.