Chevron has agreed to supply natural gas to energy retailer Alinta Energy from its $29bn Wheatstone project, which is currently under construction near Onslow, Western Australia.
Under the seven-year agreement, Chevron will supply 20 petajoules of gas per annum to Alinta Energy starting from 2020.
Alinta Energy CEO Jeff Dimery said: "The signing of this agreement provides long-term certainty for Alinta’s gas portfolio and a firm foundation for Alinta’s future gas supply to the West Australian market."
The Wheatstone project will feature two LNG trains with a combined capacity to produce 8.9 million tons per annum (MTPA) in addition to a 200 TJ/d domestic gas plant.
Chevron and project partners will market the gas from the domestic plant with the help of a pipeline to an inlet point on the Dampier Bunbury natural gas pipeline.
Chevron Australia managing director Roy Krzywosinski said: "Wheatstone is a new source of energy for 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.
"This agreement is an important step in Chevron’s rapidly expanding domestic gas business in Western Australia and the establishment of our leading domestic gas portfolio across the Wheatstone, Gorgon and North West Shelf projects."
In 2013, Chevron signed an agreement to supply 1 million tons of LNG per annum from the Wheatstone Project to Chubu Electric Power for 20 years.
Chevron operates the project owning 64.14% stake. The other partners in the project include Kuwait Foreign Petroleum Exploration with 13.4% stake, Woodside Petroleum 13%, Kyushu Electric Power 1.46% and PE Wheatstone, part owned by Tepco 8%.
Image: Chevron Australia managing director Roy Krzywosinski with Alinta Energy CEO Jeff Dimery. Photo: courtesy of Chevron Corporation.