Chevron to start work on huge Australia LNG hub
US energy giant Chevron on Monday said it would sink Aus$29 billion into the immediate construction of its massive Wheatstone gas project in Australia, targeting production in 2016, AFP reports.
Chevron got official government approval last week for the liquefied natural gas project (LNG) off western Australia's mineral-rich Pilbara region, under strict environmental protection.
One of Australia's largest resources projects, Wheatstone will include two LNG processing trains, a domestic gas plant and offshore drilling infrastructure.
Chevron Australia managing director Roy Krzywosinski said construction would start immediately, with the foundation phase to cost some Aus$29 billion (US$27.9 billion).
Up to 6,500 jobs will be created with first delivery slated for 2016.
Wheatstone will generate government revenue of about Aus$20 billion, he added, following an official signing ceremony for the project, which has a capacity of 8.9 million tonnes per year.
"Wheatstone?s go-ahead will provide vital supplies of natural gas to Australia and the region," said Melody Meyer, president of Chevron's Asia-Pacific exploration operations.
The project is a joint venture between Chevron (73.6 percent), Apache (13 percent), Kuwait Foreign Petroleum Exploration Company or KUFPEC (7.0 percent) and Royal Dutch Shell (6.4 percent).
It will mostly take gas from Shell and Chevron's offshore fields, with LNG from Apache and KUFPEC's tenements to account for around 20 percent.
Krzywosinski said Wheatstone was "Australia?s first natural gas infrastructure hub that has attracted third-party natural gas," and would lay an important foundation for future exploration.
"This unique project is a game changer for the industry, enabling the future development of Chevron?s vast natural gas resources, as well as third-party natural gas located offshore Western Australia," he said.
About 60 percent of the project's gas was already under binding long-term agreements and "discussions are continuing with potential customers," Chevron said.
Already among the world's biggest LNG exporters, Australia has approved a number of massive multibillion-dollar gas projects, hoping to tap into the burgeoning green energy market.
Chevron got official government approval last week for the liquefied natural gas project (LNG) off western Australia's mineral-rich Pilbara region, under strict environmental protection.
One of Australia's largest resources projects, Wheatstone will include two LNG processing trains, a domestic gas plant and offshore drilling infrastructure.
Chevron Australia managing director Roy Krzywosinski said construction would start immediately, with the foundation phase to cost some Aus$29 billion (US$27.9 billion).
Up to 6,500 jobs will be created with first delivery slated for 2016.
Wheatstone will generate government revenue of about Aus$20 billion, he added, following an official signing ceremony for the project, which has a capacity of 8.9 million tonnes per year.
"Wheatstone?s go-ahead will provide vital supplies of natural gas to Australia and the region," said Melody Meyer, president of Chevron's Asia-Pacific exploration operations.
The project is a joint venture between Chevron (73.6 percent), Apache (13 percent), Kuwait Foreign Petroleum Exploration Company or KUFPEC (7.0 percent) and Royal Dutch Shell (6.4 percent).
It will mostly take gas from Shell and Chevron's offshore fields, with LNG from Apache and KUFPEC's tenements to account for around 20 percent.
Krzywosinski said Wheatstone was "Australia?s first natural gas infrastructure hub that has attracted third-party natural gas," and would lay an important foundation for future exploration.
"This unique project is a game changer for the industry, enabling the future development of Chevron?s vast natural gas resources, as well as third-party natural gas located offshore Western Australia," he said.
About 60 percent of the project's gas was already under binding long-term agreements and "discussions are continuing with potential customers," Chevron said.
Already among the world's biggest LNG exporters, Australia has approved a number of massive multibillion-dollar gas projects, hoping to tap into the burgeoning green energy market.