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Project Snapshot

Wheatstone LNG
Facility Type:	LNG
Scope:	New Construction
Owner:	Chevron Corp.
Location:	Australia
Region:	Australasia
Modified: October 12, 2010
Images:	Map of Wheatstone LNG project area Map of Wheatstone LNG project area Description:

Project description

Chevron discovered the Wheatstone gas field in 2004. With resources estimated at 4.5 Tcf of natural gas, Chevron announced plans to develop the Wheatstone LNG plant on the northwestern coast of Australia in 2008 to produce gas from the Wheatstone field. Three potential sites for the Wheatstone plant include Ashburton North, Onslow, or Cape Preston on Western Australia's Pilbara coast.

The initial design for Wheatstone LNG capacity called for at least one 5-mtpa LNG train. In July 2008, Chevron announced plans to raise capacity to 15 mtpa in three trains after discovering more gas at the Iago gas field adjacent to the Wheatstone gas field. Two months later, government documents cited in media reports stated that Chevron had proposed expanding the capacity again--this time to 25 mtpa. At 25 mtpa, Wheatstone would be larger than two other major LNG projects in Australia: North West Shelf LNG and Gorgon LNG.

The Wheatstone facility will not only commercialize the Wheatstone field, but also be used to produce hydrocarbons from other fields in Northwest Australia. "Prospective natural gas development opportunities include additional LNG, domestic natural gas and gas-to-liquids," said Roy Krzywosinski, managing director of Chevron Australia, the company's Australian subsidiary.

In July 2008, Chevron announced that its Iago field was significantly larger than originally thought. Located relatively close to the Wheatstone gas field, Chevron recognized the potential for developing the field through the Wheatstone facility, but it has not announced a definitive for the field.

"The recent success with Iago-2, its relatively shallow water location and proximity to the nearby Wheatstone gas resource, will offer some exciting future development options for Iago," stated Krzywosinski.

In a statement to Australian regulators, Chevron stated on July 26, 2010, that it plans to pursue the maximum 25 million t/y capacity for Wheatstone. This capacity would be larger than that of Gorgon LNG.

On Oct. 11, 2010, Apache Corp. announced that its Apache Julimar Pty Ltd subsidiary KUFPEC Australia (Julimar) Pty Ltd (a subsidiary of Kuwait Foreign Petroleum Exploration Co.) will develop facilities to supply gas from their Julimar and Brunello discoveries to Wheatstone.

Chevron Australia Pty Ltd, Wheatstone's operator, in December 2009 signed a Heads of Agreement with Tokyo Electric Power Co. (TEPCO) to deliver 3.1 million tons per annum (mtpa) of LNG from Wheatstone for 20 years. Apache and KUFPEC will provide roughly one-quarter of the LNG.

Key Stats

Major units:
three LNG production trains, natural gas plant

Products:
LNG, natural gas

Post-project processing capacity:
25 million tonnes per annum (mtpa) of LNG

Chevron, Chubu Sign Wheatstone LNG Deals
Mar 28, 2013 - Chevron has signed binding long-term Sales and Purchase Agreements (SPAs) with Chubu Electric Power Company Inc. for LNG from the Wheatstone Project in Western Australia.

Skills Shortages, Rising Costs Threaten Australia Projects
Sep 19, 2012 - Federal Resources Minister Martin Ferguson is wary about whether Australia can secure the next phase of the liquefied natural gas boom.

Chevron Warns Future Australian LNG Projects at Risk
Aug 23, 2012 - Chevron Australia's top exec said cost increases and poor labor productivity have put the country's LNG industry at a crossroads.

Australia's LNG Skilled Labor Concerns Mount
Aug 20, 2012 - As Australia advances into the global LNG stage, it realizes it needs to quickly address the pressing issue of a shortage of skilled workers.

Shell, Chevron Swap LNG Project Assets Down Under
Aug 20, 2012 - Shell acquires Chevron's assets in the Browse LNG project in Western Australia in return for its holdings in the Wheatstone project.

Official: Australia Set to Become World's Top LNG Exporter
Jul 27, 2012 - Australia remains on course to overtake Qatar as the world's top liquefied natural gas as the country opens its doors to world-scale LNG developments.

Apache, Partners Strike Wheatstone Deal with Chubu
Apr 17, 2012 - A unit of Apache and its partners have agreed to sell LNG from the Chevron-operated Wheatstone Project in Western Australia to Chubu Electric Power. Under the heads of agreement, Chubu would receive 1 mtpa of LNG for up to 20 years.

EVT to Build Tanks for Wheatstone Project
Feb 20, 2012 - A joint venture between Thiess and EV LNG Australia (EVT) has won an approximately $500 million contract to build LNG storage and condensate tanks for the Chevron-operated Wheatstone Project, a liquefied natural gas (LNG) and domestic gas project.

Technip Wins Wheatstone Contract
Jan 26, 2012 - The deal will see Technip produce a detailed design for Chevron's Wheatstone gas-processing platform, which will be located offshore Western Australia.

Bechtel Expects to Mitigate LNG Project Cost Pressures
Dec 08, 2011 - Bechtel is confident the three gas-export projects that it's building in Australia's Queensland state can be delivered on time and budget.

Wheatstone Construction Management Contract Goes to WorleyParsons
Oct 06, 2011 - WorleyParsons on Thursday announced the award of a contract for construction management services as an integral part of the owner's team on the Chevron Wheatstone Downstream Project.

$29B LNG Plant to Boost Jobs
Sep 27, 2011 - Western Australia will become the world's second-biggest producer of liquefied natural gas after American petroleum giant Chevron on Monday gave the go-ahead to the $29 billion Wheatstone project.

Chevron Advances Wheatstone
Sep 26, 2011 - Chevron's Australian subsidiary will proceed with the construction of its Wheatstone Project in Western Australia.

Australia Minister: Carbon Tax Not Blocking Big Energy Projects
Sep 26, 2011 - Australia remains attractive for big energy investments, despite the looming prospect of a carbon tax becoming law, Australian Resources and Energy Minister Martin Ferguson said Monday.

Wheatstone Project Gains Federal Environmental Okay
Sep 22, 2011 - The Chevron-led Wheatstone JV has secured federal environmental approval for the LNG project from the Australian Commonwealth Government.

Kyushu Reaches Wheatstone Deal with Chevron
Sep 16, 2011 - Chevron Corporation announced Friday that its Australian subsidiaries have signed a Sale and Purchase Agreement (SPA)with Kyushu Electric Power Co. for the delivery of liquefied natural gas (LNG) from the Wheatstone Project in Western Australia.

Wheatstone Clears Regulatory Hurdle
Aug 30, 2011 - Final environmental approval has been given for Onslow's Wheatstone LNG development.

Chevron Secures Wheatstone LNG Sales Deal
Jul 27, 2011 - Chevron's Australian subsidiaries have signed binding SPAs with Tokyo Electric Power Co. for the delivery of LNG from the Chevron-operated Wheatstone natural gas project in Australia.

GE Wins Wheatstone Order
Jul 26, 2011 - GE Oil & Gas has entered into an agreement with Bechtel International, Inc. for the supply of compression technology for two customized LNG refrigeration trains for the Chevron-operated Wheatstone Project in Western Australia.

Chevron to Appeal Environmental Conditions for Wheatstone LNG
Jul 01, 2011 - Chevron said Friday it is appealing some conditions imposed on its proposed A$25 billion Wheatstone gas export project.

WA Regulator Recommends Chevron LNG Project Approval
Jun 15, 2011 - Chevron on Wednesday received the conditional support of regulators in Western Australia state for its A$25 billion Wheatstone gas-export project.

Shell Joins Wheatstone
Apr 10, 2011 - Chevron Corp. on Sunday announced the signing of agreements with Shell Development (Australia) Pty Ltd to bring Shell into the Chevron-operated Wheatstone Project as a natural gas supplier and equity participant.

Chevron Outlines 2011 Spending Plan for LNG, Downstream
Dec 09, 2010 - Chevron Corp. on Thursday announced a $26.0 billion capital and exploratory spending program for 2011.

Massive Aussie LNG Projects Need More Skilled Migrants - Exec
Dec 07, 2010 - Australia will need to import workers if it wants to take full advantage of its abundant natural resources, the nation's largest private construction company says.

Apache Signs Wheatstone LNG Sales Deal
Oct 11, 2010 - An Apache subsidiary has signed a Wheatstone LNG sales deal with Chevron and Tokyo Electric.

Gas Discoveries Support Australia LNG Expansion
Aug 17, 2010 - Three significant deep water gas discoveries off the west coast of Australia could support the expansion of two giant LN projects.

Chevron Targets 25M t/y Capacity at Wheatstone
Jul 26, 2010 - Chevron Corp. said Monday its proposed Wheatstone liquefied natural gas plant will have a maximum annual production capacity of 25 million metric tons.

Apache, Kufpec, Kogas Sign Wheatstone Deal
Jul 19, 2010 - Apache Corp. -- together with a subsidiary of Kuwait Foreign Petroleum Exploration Co. k.s.c. (KUFPEC) -- has signed Heads of Agreement (HoAs) for the purchase of liquefied natural gas (LNG) from the Wheatstone LNG project in Australia.

Wood Group to Provide Ops Support for Wheatstone
Jun 24, 2010 - Wood Group has been selected by Chevron Global Upstream and Gas to provide ready-for-start-up operations support services for the Wheatstone Project LNG plant on the northwest coast of Australia.

Chevron, Kyushu Sign Multiple LNG Deals
Jan 26, 2010 - Chevron Corp. announced Tuesday that its Australian subsidiaries have signed multiple Heads of Agreements (HOAs)with Kyushu Electric Power Co., Inc. for the delivery of LNG from the Chevron-operated Gorgon and Wheatstone natural gas projects.

Technip Wins FEED Contract for Wheatstone Processing Platform
Dec 14, 2009 - Technip has been awarded, by Chevron Australia Pty Ltd, a front end engineering design (FEED) contract for the offshore processing platform associated with the Wheatstone Project in Australia.

Chevron, Tokyo Electric Sign Wheatstone Deal
Dec 07, 2009 - Chevron Australia Pty Ltd, has signed a Heads of Agreement (HOA) with the Tokyo Electric Power Co. (TEPCO) to deliver 4.1 MTPA of LNG for up to 20 years from the Wheatstone Project in northwestern Australia.

Apache, KUFPEC Join Wheatstone
Oct 22, 2009 - Chevron has signed an agreement with Apache and Kuwait Foreign Petroleum Exploration Co. k.s.c. to bring them into Chevron's Wheatstone LNG project as natural gas suppliers and 25 percent equity partners in the project facilities.

Bechtel Wins Wheatstone FEED Contract from Chevron
Jul 30, 2009 - Chevron Corp. on Thursday announced the award of a major front-end engineering and design (FEED) contract for the first phase of the Wheatstone natural gas development in northwest Australia.

Chevron Proposes Wheatstone LNG Expansion
Sep 24, 2008 - U.S. energy firm Chevron Corp has proposed expanding the production capacity of its planned Wheatstone liquefied natural gas (LNG) plant in Western Australia by about 67 percent, government documents showed on Wednesday.

Chevron: Australia Discovery Boosts LNG Prospects
Jul 10, 2008 - U.S. energy major Chevron Corp said it has made a significant gas discovery at its Iago field off western Australia, which could help expand its nearby Wheatstone liquefied natural gas (LNG) project.

W. Australia Official Doubtful About Wheatstone Infrastructure
Mar 11, 2008 - Western Australia's State Government says it does not know if it can provide the necessary infrastructure to support more liquefied natural gas plants in the north.

Chevron Unveils Wheatstone LNG Plans
Mar 10, 2008 - Chevron Corp. announced that its Australian subsidiary, Chevron Australia Pty Ltd, plans to develop a new Australian liquefied natural gas (LNG) project, based on its 100 percent-owned Wheatstone natural gas discovery.