Chevron Australia has signed a new domestic gas sale agreement in Western Australia, under which it will supply mining giant BHP Billiton with Wheatstone gas, Kallanish Energy reports.
The 3.5-year contract will cover the supply of 22 petajoules (20.85 billion cubic feet) of equity domestic gas. Deliveries will start next month, Chevron said in a statement earlier this week, without disclosing financial terms.
The Wheatstone project is a joint venture between operator Chevron (64.14%), Kuwait Foreign Petroleum Exploration Company (13.4%), Woodside (13%), Kyushu Electric Power (1.46%), and Jera’s PE Wheatstone Pty (8%).
Together with the Gorgon LNG project, also operated by the supermajor, the gas facilities will produce 500 terajoules per day (473.9 million cubic meters per day) of domestic gas for the Western Australian market, at full capacity. This supply is powering “critical industries,” Chevron Australia’s managing director Al Williams said.
“As a reliable and cost-effective way to generate electricity, natural gas is a vital energy source for current and future energy needs of Western Australian industry,” he added.
This post appeared first on Kallanish Energy News.