Chevron's 2nd Train At Wheatstone LNG Project Comes Online
Zacks Investment Research | Jun 15, 2018 08:56AM ET
Chevron Corporation (NYSE:CVX) recently achieved a major milestone, as it started production at its second unit of the Wheatstone LNG project in Western Australia, solidifying its position as one of the biggest suppliers of natural gas to the Asian countries.
Chevron’s Mega LNG Projects
While Chevron is the chief operator of the Wheatstone project, owning a 64.14% stake, the remaining interests are held by Kuwait Foreign Petroleum Exploration Company, Woodside Petroleum Limited, Japan-based JERA Inc. and Kyushu Electric Power Company.
The project is located 7.5 miles west of Onslow and is intended to process gas from the Wheatstone and Iago fields, both of which are operated by Chevron. The company holds an 80.2% interest in the offshore licenses containing the Wheatstone and Iago fields. The Wheatstone fields are estimated to contain more than 4.5 trillion cubic feet of gas deposits.
The $34-billion Wheatstone project consists of two liquefaction trains with a shipment capacity of 8.9 million metric tons of LNG per year. The first cargo from liquefaction train 1 was shipped last October, few months behind target. With the second train coming online, Chevron currently operates five LNG trains in Australia, including three at the Gorgon Project.
The Gorgon LNG project is the largest single-resource project in Australia, dealing with delivery of natural gas to international and domestic customers. The $54-billion Gorgon LNG project has a shipment capacity of 15.6 million metric tons per year. While Chevron is the chief operator of the Gorgon LNG project holding 47.3% stake, Exxon Mobil Corporation (NYSE:XOM) and Royal Dutch Shell (LON:RDSa) plc Zacks Investment Research
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