Chevron Announces First Gas From Australian North West Shelf Train 5 Facility
SAN RAMON, Calif., and PERTH, Australia, Sept. 1, 2008 - Chevron Corporation (NYSE:CVX) subsidiary Chevron Australia Pty Ltd today announced first gas from the North West Shelf Venture's Train 5 onshore liquefied natural gas (LNG) facility at the Karratha Gas Plant in Western Australia.
The US $2.1 billion (Aus $2.6 billion) new Train 5 production facility is now online and is expected to increase the joint venture's export capacity by up to 4.4 million tonnes of LNG annually to 16.3 million tonnes.
President of Chevron's Asia Pacific Exploration and Production Company, Jim Blackwell, said, "The North West Shelf Project is one of the largest in the world. The addition of a fifth LNG train demonstrates Chevron's commitment to expanding its global natural gas business. LNG continues to be a major focus of Chevron's gas commercialization strategy. Over the next decade, we expect natural gas production to grow as a proportion of Chevron's total production," said Blackwell.
Roy Krzywosinski, Managing Director of Chevron Australia, added, "Chevron continues to make significant multi-million dollar investments to expand our Australian operations. We are proud to be a part of the North West Shelf Venture that has played an important role in providing clean and reliable energy to Western Australia and the Asia Pacific market for 20 years."
The Train 5 expansion includes: a fifth LNG processing train, a jetty extension and second LNG loading berth, two additional power generation units, a third LPG fractionation unit, a new fuel gas compressor, an acid gas removal unit and a third boil off gas compressor.
Chevron holds a one-sixth interest in the joint venture. In addition to Chevron's subsidiary, Chevron Australia Pty Ltd., the other North West Shelf venture participants also holding a one-sixth interest are: BHP Billiton (North West Shelf) Pty Ltd., BP Developments Australia Pty Ltd., Japan Australia LNG (MIMI) Pty Ltd., Shell Development (Australia) Proprietary Ltd., and Operator Woodside Energy Ltd. CNOOC NWS Private Limited is also part of the venture but does not have an interest in its infrastructure.
Through its Australian subsidiary, Chevron has been present in Australia for more than 50 years. It operates the planned Gorgon and Wheatstone Projects, the Barrow Island and Thevenard Island oilfields and is a foundation partner in the North West Shelf Venture (natural gas, crude oil and condensate) and in the Browse LNG development. Chevron Australia is a significant investor in offshore north-western Australia exploration, one of Chevron's four global focus areas for exploration.
Chevron Corporation is one of the world's leading integrated energy companies, with subsidiaries that conduct business across the globe. The company's success is driven by the ingenuity and commitment of approximately 59,000 employees who operate across the energy spectrum. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops and commercializes the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.
Some of the items discussed in this press release are forward-looking statements about Chevron's activities in Australia. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates," "budgets" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in prices of, demand for and supply of crude oil and natural gas; actions of competitors; timely development of the field; the potential disruption or interruption of production and development activities due to war, accidents, political events, civil unrest, or severe weather; government-mandated sales, divestitures, recapitalizations and changes in fiscal terms or restrictions on scope of company operations; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Updated: September 2008