Chevron agrees domestic gas supply deal in Western Australia

U.S. major Chevron signed a domestic gas sales agreement with the South32-operated Worsley Alumina joint venture for the delivery of natural gas.

Starting mid-2019, Chevron will supply approximately 60 petajoules of equity domestic gas over the term of the agreement for the operation of the Worsley Alumina Refinery from Chevron Australia’s domestic gas portfolio across the Wheatstone, Gorgon and North West Shelf facilities, Chevron said on Wednesday.

The Worsley Alumina joint venture consists of South32 (86 percent and operator), Japan Alumina Associates (10 percent) and Sojitz (4 percent).

Chevron Australia managing director Al Williams said that natural gas is playing a substantial role as a cleaner alternative for local customers.

“We are working to increase the supply of natural gas into Australia and international energy markets to help realize the objective of affordable solutions to delivering additional energy the world needs while reducing emissions globally,” he said.

According to recent Australian Government estimates, Australia’s total liquefied natural gas (LNG) exports are having a significant impact on reducing global emissions. In 2018, this had the potential to lower global emissions by around 148 million tonnes – equal to over a quarter of Australia’s total annual emissions.

Chevron-operated Gorgon and Wheatstone domestic gas facilities have started supplying natural gas to Western Australia’s market in late-2016 and March 2019, respectively.

At full capacity, the Chevron-operated Gorgon and Wheatstone plants will be able to produce 50 percent of Western Australia’s current domestic gas supply.