Chevron selects sites for LNG project

US oil company Chevron has selected three preferred sites in Western Australia for its planned Wheatstone liquefied natural gas project, with a decision expected mid next year.

Citing documents lodged with the federal Environment Department, The Australian newspaper reported that the plant is expected to handle some 25 million tonnes of gas a year with production to start in 2015.

Production will be initially be underpinned by gas from the Wheatstone field in the Carnarvon Basin and could be expanded to include gas from third parties and Chevron's fields in the Greater Gorgon area.

Chevron has reportedly selected three sites for the project, Ashburton North, Onslow or Cape Preston.

The company, along with its joint venture partners, is still continuing with the development of the delayed Gorgon gas project, with the companies recently committing to spend more than $1 billion and employ 1,200 workers to determine whether they should go ahead with the project.