Chevron approves $29 billion Aussie LNG project

AP News
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Posted: Sep 26, 2011 7:24 AM
Chevron approves $29 billion Aussie LNG project

U.S. energy giant Chevron Corp. says it will go ahead with a $29 billion liquefied natural gas project in Western Australia state.

Chevron, the largest holder of natural gas resources in Australia, said in a statement Monday it will build the Wheatstone field platform 140 miles (225 kilometers) off the coast of the Pilbara region of northwest Australia and pipe 8.9 million tons (8.1 million metric tons) of gas and liquid a year to a processing plant on shore.

The first phase will cost $29 billion and provide the first gas shipment in 2016. Capacity could expand to 25 million tons (23 million metric tons) a year.

Chief executive John Watson says the project will position Chevron to supply the growing energy demand in the Asia-Pacific region.

Wheatstone is a joint venture operated by Chevron, which has a 73.6 percent stake. Other partners include U.S. oil company Apache, with 13 percent; Kuwait Foreign Petroleum Exploration Co., 7 percent; and Royal Dutch Shell, 6.4 percent.