Train 1 fires up at Wheatstone
PRODUCTION from Train 1 at the $45bn Wheatstone LNG joint venture (JV) project has commenced, with first LNG cargo expected in the coming weeks.
At full capacity, the two train LNG facility near Onslow, WA, will supply 8.9 million metric tons per year of LNG for export to customers in Asia.
“First LNG production is a significant milestone and is a credit to our partners, contractors and the many thousands of people who collaborated to deliver this legacy asset,” Chevron chief executive John Watson said.
“Wheatstone adds to our legacy gas position in Australia that will be a significant cash generator for decades to come.”
The Wheatstone LNG facility is a JV between major partners Chevron (64.14 per cent), Kuwait Foreign Petroleum Exploration Company (13.4 per cent), Woodside Petroleum Limited (13 per cent), Kyushu Electric Power Company (1.46 per cent), together with PE Wheatstone, part owned by JERA (8 per cent).
“Wheatstone is a world-class asset and the safe start-up of the facility was one of our priorities for 2017, supporting our near-term growth strategy,” Woodside chief executive Peter Coleman said.
First production from Wheatstone’s Train 2 is expected in the next six to eight months, and once fully operational would contribute more than 13 Mmboe to Woodside’s annual production.
Australian Petroleum Production & Exploration Association (APPEA) chief executive Malcolm Roberts said Wheatstone was the latest project in a wave of unprecedented LNG investment that would deliver enduring benefits for all Australians.
“The Chevron-operated Wheatstone Project has delivered enormous economic benefits to Australia during its construction – more than 7000 direct jobs and more than $20 billion spent on local goods and services through 300 different Australian companies,” he said.
“But the long-term benefits will be even greater. Natural gas from Wheatstone means more wealth for Australia and more reliable and cleaner-burning energy for WA.”
Five new LNG projects have been completed since 2014 (Queensland Curtis LNG, Gladstone LNG, Australia Pacific LNG, Gorgon and Wheatstone) and another two are nearing production (Prelude Floating LNG and Ichthys).
Dr Roberts said the industry’s growth meant Australia was on track to overtake Qatar as the world’s largest LNG exporter in 2018.
“Natural gas is expected to be the world’s fastest growing traditional fuel, with the International Energy Agency forecasting global production to increase by 48 per cent to 2040.
“Australia is ideally placed to capitalise on this growing global demand.”
Wheatstone's LNG Train 1 has started production.