AUSTRALIA

Chevron spruiks Wheatstone amid module concerns

CHEVRON is adamant its Wheatstone LNG project will ship its first cargo by the end of next year a...

Chevron spruiks Wheatstone amid module concerns

With the project now more than 65% complete, about 85% of Chevron's equity LNG from Wheatstone has been committed to LNG buyers, and this week the US supermajor was out again spruiking it to fill up the order book and sing Wheatstone's praises to third-party gas suppliers.

"The project site at ANSIA [Ashburton North Strategic Industrial Area] is an ideal location for an LNG hub given its proximity to the vast gas resources in the Western Carnarvon Basin," the company said.

"The project is targeting the first LNG cargo by year-end 2016. Work to mitigate Wheatstone's schedule pressures from previous delays and module delivery continues."

This echoed concerns from Chevron CEO John Watson that some module deliveries out of Malaysia were late and that "the team is working very hard to mitigate schedule there".

"What I mean by that is with some delay in modules we're really now looking at both construction timing and some of the start-up and commissioning work that will need to be done," Watson added.

These comments came in the same announcement in which the US supermajor announced it would cut a further 6000-7000 jobs across its global workforce, with Watson identifying Australia as "one of the large areas for reductions".

The company's latest project update noted that the installation of the subsea umbilicals has started, and that 100km of flowlines and supporting infrastructure is now complete on the project.

The 42km umbilicals connect the subsea equipment to the platform.

Subsea trees continue to be installed at the Wheatstone and Iago gas fields, while in China fabrication of modules for the LNG plant also continues.

The modules for the first LNG train have been loaded out from the fabrication yard and will soon be loaded onto a semi-submersible heavy transport vessel before setting sail for Australia.

At the plant site back in WA modules continue to be installed, while at the product-loading jetty, the concrete deck for the loading platform has been poured.

"All nine wells are drilled to the top of the reservoir with four of nine wells now completed and subsea trees installed," Chevron said.

"At the plant, 17 of the 24 modules required for first LNG have been delivered and all refrigeration compressors and gas turbine generators have been installed.

"Installation of all pipe racks and electrical switchgear buildings on the product loading facility is now complete as is start-up of the power systems and the plant operations centre."

The Wheatstone project at Ashburton North 12km west of Onslow in Western Australia will consist of two trains with a combined capacity of 8.9 million tonnes per annum and a domestic gas plant to fill the state government's 15% domgas requirement.

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