Chevron increases Wheatstone domgas capacity

Domestic gas production capacity at the Chevron-operated Wheatstone gas project will increase five per cent, after modifications were made to the project’s plant near Onslow.

The nameplate capacity at the plant will jump from 205 terajoules to 215 terajoules per day.

Chevron Australia managing director Mark Hatfield said the company had undertaken modifications to the plant and a high-rate production trial over the past year to confirm safety and reliability of the increased rate.

“Chevron is one of WA’s major domestic gas suppliers, currently operating facilities that produce almost half of the state’s gas supply, helping to underpin energy security and economic prosperity,” he said. 

“The gas we produce is used in the electricity that powers homes and businesses, and supports key industries like mining, minerals processing and manufacturing, which is why we are pleased to have the confidence to increase domestic gas capacity from the Wheatstone Project on an ongoing basis.”

The move comes amid an ongoing parliamentary inquiry into the state of the domestic gas market.

The inquiry was told last week that some of the state’s LNG producers were playing catch up on their domestic gas requirements, and highlighted nuances of the state’s 15 per cent gas reservation policy which allowed producers to supply less than 15 per cent on a per annum basis.

The government also recently banned onshore gas developers in the Perth Basin from applying for LNG exemptions, requiring new supply to feed the domestic pipeline.

Chevron is a significant supplier to the local gas market, and Mr Hatfield said more work would be done to trial further increases to the domestic gas production rate at Wheatstone.

“Recognising the critical role of natural gas for WA industry and communities, we will continue to explore operational efficiencies and equipment enhancements at Wheatstone that could increase domestic gas capacity even further,” he said.

Separately, staff at Wheatstone’s downstream and offshore facilities are engaged in ongoing negotiations between Chevron and Offshore Alliance.

The latter is undertaking a protected ballot of workers at the facilities and Gorgon, on potential strikes and other industrial action.

Results of the ballots are expected in the coming days.