Chevron Australia has signed a long-term sale and purchase agreement with Australia-based aluminium producer Alcoa to supply natural gas for ten years, commencing from 1 January 2028.
This deal ensures that Alcoa will receive a total of 130PJ of gas over a decade from Chevron’s extensive gas portfolio in WA.
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The gas will be sourced from Chevron’s equity interests in the Gorgon and Wheatstone facilities and the Northwest Shelf Venture. Chevron holds a one-sixth interest in the North West Shelf Venture.
In 2020, the Gorgon project produced 2.1 billion cubic feet of gas and 15,000 barrels of condensate daily.
Wheatstone’s onshore facilities, located 12km west of Onslow, feature two liquefied natural gas trains with a combined capacity of 8.9 million tonnes per annum (mtpa) and a domestic gas plant.
Together, these facilities have the capacity to produce 530 terajoules per day, supplying around half of WA’s gas needs.
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By GlobalDataChevron Australia managing director Mark Hatfield said: “As one of WA’s largest domestic gas producers, we are proud to continue our relationship with Alcoa’s WA operations, which we have supplied from our portfolio since 2020.”
“Our significant investment in WA’s natural gas sector, including our share of the more than A$80bn [$50.75bn] invested in Gorgon and Wheatstone, has powered the development of WA’s resources industry and continues to enable the long-term supply of reliable energy to the state.”
This month, Chevron announced a $2bn reduction in its 2025 capital expenditure (capex) budget.
The company has allocated between $14.5bn and $15.5bn for subsidiary capex and $1.7bn–$2bn for affiliate capex.
In October, Chevron assumed operatorship of the AREA OFF-1 block offshore Uruguay following a farm-out transaction with Challenger Energy.
As part of the deal, Challenger Energy transferred a 60% stake in the block to Chevron’s subsidiary, Chevron Mexico Finance, Sucursal Uruguay, for $12.5m (514.93m pesos).
