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Western Australia’s Wheatstone LNG Project (the “Project”) commenced production of liquefied natural gas (LNG). The Project, in which PE Wheatstone Pty. Ltd. (“PEW”) participates, is located in the Ashburton North Strategic Industrial Area 12 kilometers west of Onslow in Western Australia. PEW is a subsidiary of Pan Pacific Energy K.K. (“PE”), which is jointly owned by four Japanese entities - Mitsubishi Corporation (“MC”), Nippon Yusen Kabushiki Kaisha (“NYK Line”), JERA Co., Inc. (“JERA”) and Japan Oil, Gas and Metals National Corporation (“JOGMEC”). The Project processes natural gas produced from the Wheatstone and Iago gas fields located in the offshore area of Western Australia’s North West Shelf into LNG for export.

The production of the first batch of LNG marks the start-up of the Project, just over five years after PEW obtained interests comprising a 10% stake in gas fields and an 8% stake in LNG plant facilities in June 2012.

The Wheatstone LNG Project is led and operated by Chevron Australia, which is also undergoing construction work on a second liquefaction train. The Project will have a combined capacity to produce 8.9 million tonnes per annum (MTPA) of LNG. PEW’s equity share of production, approximately 0.7 MTPA of LNG, will be supplied to JERA under a long-term Sale and Purchase Agreement (“SPA”).

The number of countries importing LNG has been increasing in light of increases in world energy consumption due to overall population growth. There is also a growing global trend towards a preference for clean energy sources such as natural gas and LNG in keeping with measures aimed at tackling climate change. Against this backdrop of growing global demand, it is critical that Japanese players secure stable sources for ensuring long-term sustainable natural gas supplies. The Project also carries profound significance in terms of securing energy resources through cooperation between public and private sectors.

The first cargo of LNG from the Project will be shipped in the coming weeks.

  

Project Structure

 

 

Wheatstone LNG Project Location

 

 

 

Outline of Wheatstone LNG Project

Gas Field

Wheatstone & Iago Fields

Chevron 80.17% PEW 10% KUFPEC 8% Kyusyu Electric 1.83%

Julimar & Brunello Fields

Woodside 65% KUFPEC 35%

LNG Plant

Chevron 64.136% KUFPEC 13.4% Woodside 13% PEW 8% Kyusyu Electric 1.464%

Production Facilities

Natural gas, which is produced from the Wheatstone and Iago fields and Julimar and Brunello fields, is transported via 225 km subsea pipeline from the platform to the onshore facilities including two LNG trains (8.9 mtpa), located at Ashburton North.

 

Outline of each company

-PE

Registered Name

Pan Pacific Energy K.K

Head Office

Chiyoda-ku, Tokyo, Japan

Established

May 22nd, 2012

President

Shizuho Kunogi

Shareholders

JOGMEC 42.08%, MC 39.70%, NYK Line 10.20%, JERA 8.02%

 

-PEW

Registered Name

PE Wheatstone Pty Ltd.

Head Office

Perth, Western Australia, Australia

Established

June 15th, 2012

Managing Director

Hitoshi Nishizawa

Shareholders

PE 99.90%, JERA 0.10%

 

-Chevron

Registered Name

Chevron Australia Pty Ltd (established in 2005)

Chevron (TAPL) Pty Ltd (established in 1998)

Head Office

Perth, Western Australia, Australia

Summary

Australian affiliates of Chevron Corporation (established in 1897)

 

 -Woodside

Registered Name

Woodside Energy Julimar Pty Ltd (established in 2008)

Head Office

Perth, Western Australia, Australia

Summary

Affiliate of Woodside Petroleum Ltd (established in 1954)

 

-KUFPEC

Registered Name

KUFPEC Australia (Wheatstone Iago) Pty Ltd (established in 2009)

KUFPEC Australia (Julimar) Pty Ltd (established in 2009)

Head Office

Perth, Western Australia, Australia

Summary

Australian Affiliates of KUFPEC (established in 1981), subsidiary of Kuwait Petroleum Corporation (established in 1980)

 

-Kyushu Electric

Registered Name

Kyushu Electric Wheatstone Pty Ltd (established in 2011)

Head Office

Perth, Western Australia, Australia

Summary

Australian Affiliate of Kyushu Electric Power Company, Incorporated (established in 1951)

Gas4Sea partners - ENGIE, Mitsubishi Corporation and NYK - have been selected by Norwegian multinational energy group Statoil to be their LNG marine fuel supplier in the port of Rotterdam, in the Netherlands, for four crude shuttle tankers.

The four planned dual fuel vessels are to come into service in early 2020; they will be operated by Statoil in Northern European seas.

Gas4Sea will supply LNG using the ENGIE Zeebrugge which started operations earlier this year. She is currently performing regular ship-to-ship LNG bunkering services in the port of Zeebrugge, in Belgium.

LNG Bunkering vessel (LBV) ENGIE Zeebrugge holds an LNG capacity of 5,000 m3 and is designed to serve a full range of shipping customers, in Zeebrugge as well as neighbouring ports.

Gas4Sea is a commercial brand jointly launched by ENGIE, Mitsubishi Corporation and NYK in 2016 to develop the use of LNG as a sustainable, reliable, safe and cost-effective alternative to conventional oil-based marine fuels. Its purpose and ambition is to accompany the shipping sector in the upcoming transition towards a greener maritime environment, in Europe and worldwide.

 

NYK Logistics (UK) Ltd has renewed its contract with Yamaha Music (UK) Ltd for the operation of its National Distribution Centre, handling musical instruments and audio visual equipment.