Chevron to Continue Supplying Gas to Australian Utility Alinta
Chevron Corp has signed an agreement to supply 46 petajoules (pJ) of natural gas to Alinta Energy Pty Ltd over five years.
Supply to the Perth, Western Australia-based power utility, sourced from Chevron's projects in the state, will start July 2027, a joint statement said Wednesday. In 2020 Chevron executed a seven-year agreement to supply 20 pJ per year of Western Australian gas to Alinta.
"With Alinta Energy being one of the state's largest gas retailers, the [new] agreement supports the ongoing supply of energy to WA homes, businesses and industrial customers, and continues a long-standing partnership between the two companies which dates back more than four decades", the companies said.
The earlier agreement involves the Wheatstone project. The new one expands sourcing to also include production from the Gorgon and North West Shelf projects.
"Following almost a decade in operation, Gorgon and Wheatstone have become pillars of energy security for the state and together provide approximately 40 percent of WA’s domestic gas supply", said Chevron Australia president Balaji Krishnamurthy.
Earlier this week Alinta and LNG Japan Corp announced a deal under which Alinta committed to buying 30 pJ of gas from the Scarborough field offshore Western Australia. LNG Japan owns 10 percent in the project operated by Woodside Energy Group Ltd.
Chevron-Woodside Swap
In two of the projects, North West Shelf and Wheatstone, Chevron and Woodside are completing a swap transaction to realign investment with their operatorships.
"Chevron Australia will acquire Woodside's 13 percent non-operated interest in the Wheatstone Project and 65 percent operated interest in the Julimar-Brunello Project", Chevron said December 19, 2024. Operator Chevron currently owns 64.1 percent of the Wheatstone gas project.
Located on the Pilbara coast, the project includes a two-train LNG facility with a capacity of 8.9 million metric tons per annum (MMtpa) and a domestic gas plant that delivers up to 230 terajoules (tJ) per day, according to Chevron.
On Barrow Island, Chevron also operates the Gorgon gas project - not part of the swap - with a 47.33 percent interest. Gorgon has three liquefaction trains with a combined capacity of 15.6 MMtpa and a domestic gas plant that supplies up to 300 tJ a day, according to Chevron.
In exchange, "Chevron Australia will transfer to Woodside its 16.67 percent non-operated interest in the North West Shelf Project, NWS Oil Project and its 20 percent non-operated interest in the Angel Carbon Capture and Storage Project", Chevron said.
After the transfer, Woodside will hold a 50 percent operating stake in the NWS (Gas) Project, 66.67 percent in the NWS Oil Project and 40 percent in Angel CCS, Woodside confirmed separately at the time.
The North West Shelf gas project has a liquefaction capacity of 14.3 MMtpa, reduced from 16.9 MMtpa after Woodside retired one of the project's five trains last year. The project also has two domestic gas processing trains, according to Woodside.
Woodside affirmed in its first quarter report the swap transaction would be completed by yearend.
To contact the author, email jov.onsat@rigzone.com
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