Regional LNG: Chevron announces plans for Wheatstone LNG development in Australia

US oil giant Chevron Corporation announced Sunday that its Australian subsidiary, Chevron Australia Pty Ltd, plans to develop a new Australian liquefied natural gas (LNG) project, based on its 100 percent-owned Wheatstone natural gas discovery.

The facility will be located on the northwest coast of mainland Australia and have initial capacity of at least one 5 million-ton-per-annum LNG production train with expansion capacity for additional production trains, the company said. The facility will also provide commercial domestic gas to the local market.

Discovered in 2004, Wheatstone is located 145 km offshore in the Carnarvon Basin in water depths of around 200 m. The initial phase of the development will tap an estimated 4.5 trillion cubic feet of natural gas resources located within the two Chevron-operated permits that include Wheatstone.

Chevron Australia is currently preparing design studies for development and production, site evaluation, and further field appraisal work. Front-end engineering and design is expected to commence in 2009. (alex)