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LNG Production Gets Underway at Australia's Wheatstone LNG Project

October 10, 2017

Mitsubishi Corporation
Nippon Yusen Kabushiki Kaisha
JERA Co., Inc.
Japan Oil, Gas and Metals National Corporation
 

 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.

Note to editors

Wheatstone LNG Project Location

Wheatstone LNG Project Location

Project Structure

Project Structure

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)

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