Wheatstone Project, Australia

Wheatstone is the first third-party natural gas hub in Australia. The Chevron-operated project is regarded as one of the largest resource developments in the country and ensure energy security in the region.

The project`s offshore processing platform is located about 225km from the coast, at a water depth of 70m. The offshore component receives and processes gas and condensate from the Wheatstone, Iago, Julimar and Brunello gas fields, and supplies it to the onshore facility via a 225km trunkline.

Wheatstone project onshore facilities are located at the Ashburton North Strategic Industrial Area (ANSIA), 12km west of Onslow on the Pilbara coast of Western Australia.

The LNG project is a joint venture between Chevron Australia (64.14%), Kuwait Foreign Petroleum Exploration Company (KUFPEC) (13.4%), Woodside Energy Group (13%), and Kyushu Electric Power Company (1.46%), together with PE Wheatstone, and part-owned by JERA (8%).

The plan to develop Wheatstone was first unveiled in 2008. This was followed by the final investment decision (FID) on the A$29bn ($19bn) project in September 2011.

The Wheatstone project shipped its first cargo in October 2017. It is estimated to have a lifespan of 30 years.

According to Chevron, Wheatstone created more than 7,000 direct employments during peak construction. Over its operational phase, it will generate around 30,000 direct and indirect jobs.

It will also add A$180bn to Australia’s GDP from 2009 to 2040 and contribute A$50bn in revenues over the same period.

Gas Supply

The Wheatstone LNG project receives approximately 80% of its foundation capacity from Wheatstone and Iago fields, which are operated by Chevron Australia in a joint venture with Australian subsidiaries of KUFPEC, Kyushu Electric Power and PE Wheatstone.

The Julimar and Brunello fields, held by Australian subsidiaries of Woodside Petroleum and KUFPEC, supplies the remaining 20% of project’s capacity.

Wheatstone Offshore Facilities

The Wheatstone offshore components comprise well infrastructure and subsea installations, a gas processing platform in a water depth of 73m, and an approximately 225km export pipeline.

The gas and condensate production from the fields will be transported to the processing platform via subsea gas gathering systems for dehydration, dewatering, compression.

Subsequently, it is transported onshore via the export pipeline.

Wheatstone Onshore Components

The Wheatstone LNG project’s onshore components at Ashburton North include a slug-catcher to separate the gas and liquids and a two-train LNG processing plant.

The facilities also include a domestic gas processing plant and a pipeline connected to the Dampier-to-Bunbury Pipeline, LNG and condensate storage unit, a shipping channel, turning basin, Materials Offloading Facility (MOF) and export jetty among others.

At onshore, the gas and condensate undergo further processing.

The LNG trains remove impurities and inert gases. The natural gas is cooled to -162°C and stored in insulated storage tanks for export via LNG tankers.

The two trains have a combined capacity of 8.9 million tonnes per annum (MTPA).

Wheatstone’s 200 terajoules (TJ) per day domestic gas plant delivers natural gas to an inlet point on the Dampier Bunbury Natural Gas Pipeline.

The onshore processing facility comprises two LNG trains with a combined capacity of 8.9 million tonnes per annum (MTPA) and a 200 terajoule per day domestic gas plant. The LNG facility is approved to produce up to 25 MTPA.

Wheatstone Offtake Agreements

Chevron has committed around 85% of its equity LNG from the Wheatstone project to Asian buyers.

The agreements are with JERA (4.1 MTPA), Kyushu Electric (0.7 MTPA) and Tohoku Electric (0.9 MTPA).

In June 2012, JERA signed an additional SPA for 0.4 MTPA of LNG from the Wheatstone Project.

Contractors Involved

US-based construction company Bechtel was engaged to provide the engineering, procurement, construction and commissioning services for the downstream scope Wheatstone project.

In December 2009, Technip won the front-end engineering design (FEED) contract for the offshore processing platform for the project.

McDermott carried out key Engineering, Procurement, and Construction (EPC) works for the project. This included installation of 53 OSBL pre-assembled modules; 11 domestic gas (DOMGAS) unit modules; feed gas pipeline; slug catcher; gas turbine generator packages and BOG Compressor among others.

As part of the project, AGC won a supply and fabrication contract for offshore pipeline and subsea construction by Allseas.

Prysmian was responsible for the supply of onshore power, control, instrumentation and telecom cables, while DEME dredged the approach channel for the Wheatstone project.

ENTREPOSE Contracting and VINCI Construction Grands Projet offered engineering, supply logistics, and construction services for two LNG storage tanks and two storage tanks for condensates.

Bechtel awarded Van Leeuwen Pipe & Tube West Australia a blanket purchase order in September 2012, for the supply of carbon, low carbon, alloy, high alloy and stainless steel pipe, butt weld fittings, forged flanges and violets.

Since 2013, Ertech carried out construction works including general site services, roadworks and earthworks for the project.

Brunel provided manpower services for the Wheatstone LNG project. Brunel’s responsibilities included providing recruitment, contractor management, mobilisation and in-country support services to the operator and other joint venture partners in all project locations.

The Kiewit-Ertech joint venture was engaged to provide general construction services for the project.

As an engineering contractor, John Holland sub-contracted APC for the design, manufacture, supply and installation of storage tanks.

Chicago Bridge & Iron Company (CB&I) assisted Bechtel in providing mechanical and piping construction work for outside battery limit modules for the Wheatstone project.

Downer provided the Electrical and Instrumentation Engineering projects for the downstream portion of the Wheatstone project.

Onslow-based NTC Contracting won a civil and earthworks contract at Wheatstone for up to five years, in February 2018.