Whitby signs off Wheatstone carbon rules

New emissions targets for Chevron’s Wheatstone LNG plant have been signed off by the state government.

The decision gives a pathway to net zero by 2050 for the facility near Onslow, which cost the US business and its partners more than $US34 billion to build.

The new rules were approved by Environment Minister Reece Whitby and will cover reservoir emissions, which refer only to greenhouse gases extracted during processing.

Cuts to emissions will start slowly, with the period between 2030 and 2035 likely to produce about 15 per cent less carbon than the five years to 2025.

By the 2040-45 period, emissions will be cut by almost half.

Chevron Australia managing director Mark Hatfield said the company was committed to cutting scope one emissions at both Gorgon and Wheatstone.

“With our two operated LNG projects in Australia now having scope one net zero by 2050 greenhouse gas conditions in place, the path has been set for us to meet the growing demand for energy in our region while reducing net emissions,” Mr Hatfield said.

Business News revealed the new Gorgon emissions rules in October.

The Gorgon project has one of the world’s first large-scale carbon capture and storage systems to reduce its environmental impact.

While the system had early problems, it has abated about 7.8 million tonnes of greenhouse gases, Chevron said.

Mr Hatfield said the challenge to reduce emissions would be significant, and there was uncertainty about hitting the targeted long-term cuts.

But the business was committed to achieving the goal, he said.

The Wheatstone plant is owned by Chevron (64 per cent), Woodside (13 per cent), Kuwait Foreign Petroleum Exploration Company (13 per cent), and a suite of Japanese investors.

The facility can produce nearly 9 million tonnes of LNG per year through two processing trains.