CHEVRON will supply utility Alinta Energy with 20 petajoules (PJ) of gas per year from the Wheatstone project under a seven year domestic sales agreement starting from 2020.
Alinta Energy chief executive Jeff Dimery said the agreement provided long-term certainty for Alinta’s gas portfolio and a firm foundation for the company’s future gas supply to the Western Australian market.
“Securing this agreement demonstrates Alinta’s ongoing commitment to our Western Australian customers and will enable continuation of Alinta’s award winning excellence in customer service and competitive product offerings into the future.”
Chevron Australia managing director Roy Krzywosinski said the agreement was an important step in its domestic gas business in Western Australia.
“At full capacity, the Wheatstone project has the capacity to produce 200 terajoules per day (TJ/d) of domestic gas for the Western Australian market,” he said.
“We are committed to being a safe, competitive and reliable supplier of domestic gas for Western Australia’s future energy needs and pleased to strengthen our longstanding relationship with Alinta Energy.”
Gas from the Wheatstone domestic gas plant is being marketed separately by the Wheatstone project joint venture participants and will be delivered from Onslow via pipeline to an inlet point on the Dampier Bunbury natural gas pipeline.
Chevron currently supplies 10 per cent of the Western Australian gas market through its participation in the North West Shelf project.
Wheatstone is expected to deliver domestic gas to the Western Australian market in 2018.
The Wheatstone project is a joint venture between Australian subsidiaries of Chevron (64.14%), Kuwait Foreign Petroleum Exploration Company (KUFPEC) (13.4%), Woodside Petroleum (13%) and Kyushu Electric Power Company (1.46%), together with PE Wheatstone, part owned by TEPCO (8%).