Wheatstone gas project US$29bn approval is go

IRJ –September 26 –Stateside-headquartered energy giant Chevron’s US$29 billion Wheatstone LNG project in Australian resource haven the Pilbara region received first phase investment approval, Monday, and the company further clarified its plans for commencing construction.

Having obtained environmental approval from the federal government, Friday, Chevron—the largest holder of natural gas ground in Australia—announced that Wheatstone will be built 140 miles (225 kilometres) off the Pilbara coast and the facility will send 8.9 million tons (8.1 million metric tons) of gas and liquid per year to shore through its pipeline, destined to meet demand from the Asia-Pacific region. It is also reported that following the project’s first phase, which is on track to provide first shipment in 2016, Wheatstone’s developers could look to up capacity to 25 million tons per year.

“At this point we've actually become slightly more bullish on gas demand coming out of Asia,” George Kirkland, Chevron's vice-chairman told press.

“The benefits flowing from the Wheatstone project will be felt right across the country with the contribution it will make to jobs, government revenues, export incomes and spending on Australian goods and services,” Martin Ferguson, Australia's energy and resources minister told press.

Chevron as 73.6 per cent interest holder will operate this first phase of project, and partners in the joint venture include Apache Corp., Kuwait Foreign Petroleum Exploration Company and Royal Dutch Shell PLC. It will be Chevron’s second major spend in Australian LNG, following the A$43 billion Gorgon natural gas project on Barrow Island, Western Australia, in which it has a 47 per cent share and standing as operator with first production scheduled for 2014.

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