After eight years Chevron ships LNG cargo from Wheatstone
Chevron Australia, after eight years and tens of billions of dollars of investment, has finally shipped its first LNG cargo from its Wheatstone Project in Pilbara, WA.
The cargo will be delivered to one of Chevron’s foundation buyers, JERA, for delivery into Japan, with the site able to produce 15.8mn tonnes per annum once at full production. Combined with Chevron’s Gorgon project, the two projects could between them produce enough gas to supply half of Western Australia’s requirements.
Chevron Australia Managing Director Nigel Hearne said: “The first shipment of LNG from the Wheatstone Project signifies our commitment to be a safe and reliable long-term supplier of cleaner-burning natural gas for our customers in the Asia-Pacific region.”
Started in 2009, the Wheatstone Project has involved 300 companies and more than 7,000 workers, with well over $20bn spent on local goods and services since the outset.
At full capacity, the Wheatstone Project’s two train LNG facility is expected to contribute around six percent of the Asia Pacific region’s total future LNG production, delivering 8.9 MTPA of LNG for export to customers in Asia. The Project’s domestic gas plant also has the capacity to produce 200 terajoules per day of domestic gas for the Western Australian market.
Hearne continued: “The Wheatstone Project is Australia’s first third-party natural gas hub enabling future development of the vast natural gas resources offshore Western Australia. Through collaboration our goal is to efficiently develop and commercialise this resource.”
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.