Woodside expects hike in 2018 LNG production, boosted by Wheatstone Train 2
- Business & Finance
Australian oil and gas company Woodside expects an increase in its LNG production in 2018, boosted by the start-up of the second train of the Wheatstone development.
The Chevron-operated Wheatstone LNG project started producing in October 2017, fed by gas from Wheatstone, Iago, Julimar and Brunello offshore gas fields in Australia. The first LNG cargo was delivered to JERA on 12 November 2017.
A shutdown was carried out in December to clean and replace strainers in LNG Train 1. The plant was then re-started on December 27, 2017.
In a statement on Thursday, Woodside, a partner in Wheatstone, said that the Train 2 construction was on plan and over 90% complete.
The key priorities for Train 2 are completion of final mechanical fit-out and instrumentation and controls pre-commissioning for refrigeration compressors.
First LNG from Wheatstone Train 2 is expected in Q2 2018. Domestic gas production is expected to commence in H2 2018.
Woodside CEO Peter Coleman said Wheatstone LNG Train 1 start-up and subsequent first cargo delivery were a significant achievement for the project and “our attention is now focused on supporting the operator with the completion of Train 2 and the domestic gas facility, as well as optimizing performance.”
“We anticipate that the stronger oil prices experienced in the fourth quarter will flow through to higher realized LNG prices in the first quarter of 2018.”
“Looking ahead to 2018, we can expect a significant increase in annual LNG production and we anticipate we will be cash flow neutral at $35 a barrel,” he said.
Woodside’s LNG production in 2017 was 61.7 MMboe, with the company now expecting the LNG production to grow to 69 – 71 MMboe in 2018.
As for the expenditure, the company expects to invest some $1,5 billion- $1,6 billion in 2018. Most of the investment will be spent on Greater Enfield project off W. Australia as subsea installation and drilling activities start.
Offshore Energy Today Staff