press release

Chevron Press Release - Chevron Announces Gas Utilization Study

Targets North America West Coast

SAN FRANCISCO, March 19, 2001 -- Chevron today announced that it is reviewing options for importing liquefied natural gas (LNG) to serve the fast growing demands for clean energy in North America's west coast area.

Should the project be economically viable, first supplies of LNG could begin arriving as early as 2005.

"We think this project has tremendous possibilities both in terms of helping to ease the region's energy shortages and using a clean fuel to do it," said Peter Robertson, president of Chevron Overseas Petroleum Inc.

Chevron could supply the LNG from its extensive gas holdings in Australia. The natural gas would be liquefied through a process of refrigeration and then transported in LNG carriers, ships specially designed and built for this purpose. On arrival at destination, the process is reversed with the LNG re-gasified and delivered to customers via pipeline. It is expected that some of the gas would be used as fuel for new and existing electric power generation plants. LNG has the advantage of reducing the volume of gas by more than 99 percent, making marine transportation practical and efficient.

"LNG is a proven, safe and reliable method of transporting natural gas and it has been used around the world for more than 30 years," said Robertson. LNG is currently imported to the U.S. on both the East and Gulf coasts.

As part of the project review, the Chevron team will evaluate several alternative locations -- including possibly offshore -- for the receiving terminal facilities.

Updated: March 2001