Dismissed as a useless byproduct of crude oil production until the second half of the 20th century, natural gas now accounts for 23 percent of the world's energy consumption. And the demand is growing.
An environmentally friendly and efficient energy source, natural gas is the cleanest-burning conventional fuel, producing lower levels of greenhouse gas emissions than heavier hydrocarbon fuels such as coal and oil. Historically, natural gas also has been one of the most economical energy sources. Natural gas fuels electric power generators, heats buildings and is used as a raw material in many consumer products, such as those made of traditional plastics.
The International Energy Agency predicts that the demand for natural gas will grow by approximately 44 percent through 2035. Chevron is well positioned to meet this escalating demand.
What Chevron Is Doing
Natural gas is a growing segment of Chevron's energy portfolio. Our natural gas resources span six continents, with significant holdings in Africa, Australia, Southeast Asia, the Caspian region, Latin America and North America. Chevron has a net production of more than 4.9 billion cubic feet of natural gas per day, including equity shares in affiliates, and we expect to substantially increase this volume over the next decade.
Although world gas resources are plentiful, the regions with natural gas surpluses are often oceans away from the greatest demand. Chevron has the capabilities required to meet the challenges of developing resources and delivering natural gas to markets where its use is growing.
Chevron is engaged in every aspect of the natural gas business—production, liquefaction, shipping, regasification, pipelines, marketing and trading, power generation, and gas-to-liquids (GTL).
We hold the largest natural gas resource position in Australia through the Gorgon and Wheatstone projects, the Browse Basin, and the North West Shelf Venture. We also have significant natural gas holdings in western Africa, Bangladesh, China, Indonesia, Kazakhstan, North America, the Philippines, South America, Thailand, the United Kingdom and Vietnam.
Australia
North West Shelf Venture – We are a longtime participant in Australia's North West Shelf Venture, which operates offshore producing fields and extensive onshore facilities that include five liquefied natural gas (LNG) processing units, or trains, and a domestic gas plant. Approximately 70 percent of the natural gas is sold in the form of LNG to major utilities in Japan, South Korea and China, primarily under long-term contracts.
Gorgon Project – Chevron is leading the development of Australia's largest single-resource project. The Gorgon Project includes a three-train 15 million-metric-ton-per-year LNG facility on Barrow Island, a domestic natural gas plant and a carbon dioxide injection project. Work on the project is progressing on schedule, with approximately 40 percent of construction completed on Barrow Island and in fabrication yards in various countries.
Wheatstone Project – The Chevron-operated Wheatstone Project includes a two-train 8.9 million-metric-ton-per-year LNG facility and a separate domestic gas plant, both at Ashburton North, on the West Pilbara coast of Australia. The facilities will be fed by natural gas from the Wheatstone and Iago fields, as well as third-party gas. The final investment decision was announced in September 2011.
Browse LNG Development – The three gas fields that make up the Browse development—Brecknock, Calliance and Torosa—are in the Browse Basin, about 155 miles (250 km) off the far northwest coast of Western Australia. In 2011, the Browse LNG development began environmental, geophysical, geotechnical, and engineering and design studies.
Africa
Angola LNG Project – Chevron has a 36.4 percent interest in Angola LNG Limited, which will operate the country's first LNG plant. The first shipment from the 5.2 million-metric-ton LNG plant in Soyo is expected in 2012.
Escravos, Nigeria – Chevron is partnering with the Nigerian National Petroleum Corporation to build a GTL plant expected to convert 325 million cubic feet of natural gas per day into 33,000 barrels of liquids—principally, synthetic diesel. When completed, the plant is expected to supply clean-burning, low-sulfur diesel fuel for cars and trucks. The plant is expected to begin production in 2013.
Niger Delta, Nigeria – Chevron is developing several gas projects in the Niger Delta to increase gas supplies for national and regional power generation and reduce routine natural gas flaring.
Asia
Thailand – The Platong Gas II project in the Gulf of Thailand is expected to boost Thailand's domestic gas production by 10 percent. Chevron announced first production at Platong II in October 2011.
Vietnam – The Vietnam Block B Gas Development will supply gas to utilities in southern Vietnam. In 2011, the project made progress with front-end engineering and design, and the government approved an environmental impact assessment in April.
China – The Chuandongbei project is under way in China's Sichuan Basin. Upon completion, the full development will include two new sour gas processing plants and five natural gas fields with gathering systems and tie-ins to the plants.
Latin America
Plataforma Deltana, Venezuela – The Loran Field in the offshore Plataforma Deltana region is scheduled to supply natural gas for Venezuela's first LNG project. Chevron holds interests in two blocks that would provide the first natural gas supply to this project.
North America and Europe
The company is adding more shale gas acreage to its portfolio, including recent acquisitions in Pennsylvania, western Canada and Eastern Europe. Shale gas refers to natural gas found in fine-grained sedimentary rock. Locked in very small spaces within the reservoir rock, the gas is extracted using advanced technologies that allow it to flow to production wells.
Chevron will continue to find, develop and deliver natural gas to meet the rising demand for energy.
Updated: April 2012
Cautionary Statement