leading the way with LNG
June 1, 2015 – Through an industry-leading queue of major capital projects, a strong focus on operational excellence and a commitment to helping local economies thrive, Chevron is positioned to be a leader in bringing reliable liquefied natural gas (LNG) to the market.
John Watson details the future of natural gas at the World Gas Conference in Paris, France.
Chairman and CEO John Watson, Gas and Midstream President Pierre Breber and Chevron Africa and Latin America Exploration and Production President Ali Moshiri described our bullish approach to growing our LNG business in remarks at the 2015 World Gas Conference in Paris. "With projects under construction at Gorgon and Wheatstone, along with our existing equity shares at Angola LNG and the Northwest Shelf, we expect to become one of the top 10 LNG suppliers in the world within the next five years," said Watson. This growth in our LNG business will help Chevron reach its target of 3.1 million barrels of oil equivalent production per day in 2017—a 20 percent increase from 2014 production levels.
Today's global economy depends on affordable, reliable energy to drive economic development and provide the goods and services the world needs. The U.S. Energy Information Administration projects global energy demand will increase as incomes rise and the middle class grows. A major portion of that growth will come from natural gas—much of it delivered to market as LNG. Achieving this growth will require the industry to move forward on multiple, geographically diverse projects today to ensure sufficient supplies in the future. For example, "The Gorgon LNG facility will supply just over 15 million tons of LNG per year. So the world will need more than a Gorgon-sized project each year for nearly 10 years to meet projected demand," said Watson.
Industry will have to come up with new and innovative approaches to ensure the necessary infrastructure is built.
Chevron is doing its part. We are already a leading global supplier of natural gas, with resources on six continents. Natural gas is rising to about 40 percent of our portfolio, from about 35 percent 10 years ago. The growth of our LNG business is timely, and geographically strategic, as demand is projected to be particularly strong in Asia-Pacific, aligning with Chevron's major LNG projects.
Delivering LNG Safely and Responsibly
By liquefying natural gas, we are able to transport the fuel safely and efficiently to key markets. Chevron Shipping Company is bringing six new state-of-the-art LNG carriers into our fleet as part of the largest shipbuilding and fleet modernization program in recent history. The addition of these carriers will enable us to further link our projects to the market and help meet the growing demand for LNG.
This emphasis on safe operations is consistent with our commitment to produce energy safely and reliably wherever we operate. Environmental responsibility is an integral component of our work. A leading example of our approach in action is Barrow Island, Australia's largest onshore operating oilfield and the site of Gorgon's LNG processing plant. Barrow Island is a Class A Nature Reserve, home to 24 species and subspecies found nowhere else on earth. In all of our operations on Barrow Island, we have developed a system that is a model of environmental stewardship. Since the start of the Gorgon project at Barrow Island there have been zero introductions of nonindigenous species. This record is consistent with our global record of environmental protection.
Helping Local Communities Thrive
We believe that business investments are the foundation of corporate responsibility. We demonstrate our commitment to countries and communities where we operate by creating jobs, employing and developing local workforces and, where possible, sourcing from local suppliers. In 2014 alone, we invested more than $63 billion in goods and services to support energy development around the world.
Through our growing investment in major capital projects, including our LNG projects, we make select social investments in three core areas—health, education and economic development—to develop skilled workers, improve access to health care and boost local and regional economies.
In Australia, we have awarded more than 600 local contracts and created 17,000 jobs through the Gorgon and Wheatstone projects.
Our investments in the Onslow region of Western Australia exemplify our commitment to help local communities thrive. In the region, the site of our Wheatstone LNG Plant, we have contributed more than $250 million to social and critical infrastructure projects that will further develop the area's health, education and recreational facilities.
By developing LNG projects, we are meeting a growing global need for natural gas in a safe, efficient way, while contributing to the overall well-being of the communities where we operate. And by delivering major LNG projects from Gorgon, Wheatstone, and elsewhere, we are establishing Chevron as a leading global supplier.
Published: June 2015