Natural gas now accounts for about 22 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 the heavier hydrocarbon fuels, like 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.
According to the U.S. Department of Energy, the demand for natural gas will grow by approximately 56 percent through 2040. 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's net production in 2014 was about 5.17 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 develop resources and deliver 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 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 and the United Kingdom.
Chevron continues to evaluate the shale and tight-resource acreage in its portfolio. Shale and tight resources are sources of natural gas, found in the fine-grained sedimentary rock. Locked in very small spaces within the reservoir rock, the gas is extracted using advanced technologies that enable it to flow to production wells.
Gorgon Project – Chevron is leading the development of Australia's largest single-resource project. Based on Barrow Island, the Gorgon Project includes a liquefied natural gas (LNG) facility with three processing units capable of producing 15.6 million metric tons of LNG per year, a domestic natural gas plant and a carbon dioxide injection project. Work on the project continues. The plant is expected to start up by the end of 2015.
Wheatstone Project – The Chevron-operated Wheatstone Project includes an LNG facility with two processing units capable of producing 8.9 million metric tons of LNG per year 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. Startup of the first train is expected in 2017.
North West Shelf Venture – We are a longtime participant in Australia's North West Shelf Venture, which operates offshore producing fields as well as extensive onshore facilities that include five LNG processing units and a domestic gas plant. Approximately 80 percent of the natural gas is sold in the form of LNG to major utilities in Asia, primarily under long-term contracts.
Angola LNG Project – Chevron has a 36.4 percent interest in Angola LNG Limited, which operates the country's first LNG plant. The 5.2 million-metric-ton plant in Soyo made its first shipment in 2013, but experienced an extended shutdown starting in April 2014. Following modifications and repairs, the plant is expected to resume production in 2015.
Escravos, Nigeria – Chevron, in partnership with the Nigerian National Petroleum Corporation, built a GTL plant designed to convert 325 million cubic feet of natural gas per day into 33,000 barrels of liquids—principally synthetic diesel. The plant, which began production in mid-2014, supplies clean-burning, low-sulfur diesel fuel for cars and trucks.
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.
Bibiyana, Bangladesh – Chevron announced the start of production at the Bibiyana Expansion Project in 2014. The project is designed to add another 300 million cubic feet of natural gas per day.
Thailand – The Platong II project in the Gulf of Thailand provided a significant boost to Thailand's domestic gas production when it began producing in 2011.
Chuandongbei, 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. The first processing unit reached mechanical completion in 2014. Project startup is planned for 2015.
Colombia - Chevron operates the offshore Chuchupa natural gas field as well as the onshore Ballena and Riohacha natural gas fields in the province of La Guajira. Chevron receives 43 percent of the production for the remaining life of each field and a variable production volume from a fixed-fee agreement based on prior Chuchupa capital contributions. In 2014, net daily production averaged 186 million cubic feet of natural gas. Additional compression facilities for existing fields were installed in 2014.
El Trapial, Argentina – In 2014, Chevron signed agreements to explore for shale oil and gas resources in the Narambuena Block in the Vaca Muerta Shale. The exploration plan for Narambuena calls for nine wells to be drilled in two phases.
North America and Europe
Chevron's shale and tight-resource portfolio includes acreage in the Permian Basin in the United States, as well as newer positions in several other plays elsewhere in the United States and Canada. Areas of particular focus are the liquids-rich shale formations in the Permian Basin and the Duvernay Shale in Canada. In the United Kingdom, production from the North Sea fields averaged 88 million net cubic feet per day in 2014.
Chevron will continue to find, develop and deliver natural gas to meet the rising demand for energy.
Updated: May 2015