Chevron Corp Discovers More Gas Offshore Western Australia
Chevron Corp has announced drilling two gas discoveries in the Carnarvon Basin offshore Western Australia that are expected to reinforce expansion prospects into the $29 billion Wheatstone liquefied natural gas project.
In a statement, Chevron Corp. said the discoveries were made at its Acme West-1 and Acme West-2 wells in the Carnarvon Basin, turning up some 115 m and 56 m net gas pays, respectively.
"This is our 11th exploration discovery in a two year period. Our exploration success and ability to continually add to our Australian portfolio supports our long-term plan to position Chevron as one of the world's leading LNG suppliers," George Kirkland, Chevron Corp. vice chairman, said.
It was in August 2010 when the nearby Acme field was discovered by the Acme-1 wildcat with a net gas pay of 273 m. It was hailed as one of the most significant gas finds in Australia.
The multi-billion Wheatstone liquefied natural gas project is expected to start operations in 2016 with an initial production capacity of 8.9 million tonnes of liquefied natural gas a year through two trains.
With additional trains, its output can reach up to 25 million tonnes a year.
The Wheatstone liquefied natural gas project expects to sell off 80 to 85 per cent of its products by mid next year to interested parties, according to Perth Now News. Around 65 per cent of the Wheatstone gas contracts have been sold to TEPCO and Kyushu Electric Power Co., while talks are ongoing with Korea Gas Corp. to purchase over 1.95 million tonnes a year of LNG from Wheatstone.
Chevron Australia is the operator of the WA-205-P permit and holds a combined 67 per cent interest into the project, with the remaining held by Shell Development (Australia).
One of the world's leading integrated energy companies, Chevron Corp. is involved in virtually every facet of the energy industry. Chevron Corp. explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels.