Chevron pushes back first Wheatstone LNG cargo (Video)

Oil and gas giant Chevron confirmed Friday it has delayed first LNG cargo from its US$29 billion Wheatstone project in Australia.

Chevron said in November last year that the LNG project located 12 kilometers west of Onslow in Western Australia’s Pilbara region could be delayed because of the late delivery of modules from Malaysia. First LNG from the giant project was expected by the end of 2016.

We were successful in mitigating further delays and all modules required for train one are now on site. Piping and cabling work is ongoing. The pace of this work will determine critical path towards first LNG, which is expected to be midyear 2017,” Chevron’s CEO John Watson said during presentations to investors on the company’s 2015 profit performance.

According to the CEO, Chevron we’ll be spending “about $6 billion on LNG projects around the world in 2016, obviously, finishing Angola LNG and then as we wind down Gorgon and have a little more spend on Wheatstone. We expect next year that spend will be under $2 billion, so you gain $4 billion right there.”

Woodside response

Australian LNG player Woodside said Monday that the Julimar project, which will supply gas to the Wheatstone onshore plant, remains on schedule and on budget. Woodside has a 65 percent equity interest in the Julimar project and is operator of the development.

Delivery commitments under the applicable LNG Sales Agreements can be met under the revised schedule,” Woodside said in a response after Chevron’s confirmation of delays at the Wheatstone project.

Wheatstone video update

Chevron posted a video last week of the current construction progress at the Wheatstone LNG project, which will consist of two LNG trains with a combined capacity of 8.9 million metric tons per annum and a domestic gas plant.

The LNG project is a joint venture between Australian subsidiaries of Chevron (64.14 percent), Kufpec (13.4 percent), Woodside (13 percent), and Kyushu Electric (1.46 percent), together with PE Wheatstone, part owned by Tepco (8 percent).

LNG World News Staff

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