Chevron Signs Export Deal For Wheatstone LNG

Chevron's Wheatstone gas field has long been the subject of a tug of war between Chevron (who want to develop it themselves - at one point talking up the possibility of building a GTL plant) and Woodside, who want to use the gas as feedstock for their second Pluto LNG train, which will shortly begin construction at the Burrup Penninsula.

It appears that Chevron have found a customer for the gas at last, with weekend press reports trumpeting a "$90 billion" gas sale to Japanese power company Tokyo Electric. The development is expected to produce 4.1 million tonnes of LNG exported each year. A final decision on the project is expected in 2011.

With Pluto, Gorgon and Wheatstone all looking to move forward after long delays, and the federal government's "use it or lose it" push to get holders of gas reserves to develop them quickly, we may see the Browse and Sunrise fields developed in the coming decade as well.

Cross posted from Peak Energy.

This is a truly massive contract - bigger even than "Pluto" (which itself was some sort of record, wasn't it?). But - will this be yet another of those long-term gas contracts tht will look like a great deal for the purchaser once the world starts sliding down the Peak Oil slope?

At least Chevron will now have plenty of spare change to bombard us with even more ads about how green they are...

This contract is bigger than the much ballyhoed $50 billion contract Gorgon has been talking about (though their Chinese customer doesn't think it was worth that much - its hard to be sure when much of the revenue is linked to future oil prices !).

And yes - lots more "Human Energy" ads heading our way from Chevron - though the phrase always makes me think of slavery whenever I read those ads :-)