US energy giant Chevron signed a domestic gas sale agreement with BHP Billiton Nickel West for volumes from the Wheatstone LNG project.
Starting July 2020, Chevron will supply BHP Nickel West with a total of 22 Petajoules of equity domestic gas over the 3.5-year term of the agreement.
Chevron Australia managing director Al Williams said the agreement highlighted the important role of natural gas in powering critical industries, such as mining, across the state.
“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 said.
At full capacity, the Chevron-operated Gorgon and Wheatstone natural gas facilities will produce 500 terajoules per day of domestic gas for the WA market – enough to generate electricity for 4.3 million households.
As a key and growing participant in the Western Australian market, Chevron is actively marketing domestic gas under long and shorter-term arrangements.
Chevron Australia operates the Gorgon and Wheatstone LNG projects and their natural gas facilities, manages its equal one-sixth interest in the North West Shelf Venture, operates Australia’s largest onshore oilfield on Barrow Island, and is a significant investor in exploration.