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Chevron faces emissions review at Wheatstone LNG

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LNG Industry,

Reuters are reporting that Chevron Corp could face tougher emissions curbs at Wheatstone LNG in Western Australia after the state reviews environmental conditions imposed on the US$34 billion project.

The state government has asked the Environmental Protection Authority (EPA) to review Wheatstone following the repeal of the Clean Energy Act, which took effect in 2012 and led the state to waive some conditions set when the project was approved in 2011.

The original approval terms, which required Wheatstone to offset 2.6 million tpy of reservoir carbon dioxide emissions, were waived after the Clean Energy Act.

Chevron, which committed to a AUS$13 million environmental offsets package under the initial Wheatstone approval, including managing habitats for whales, dugongs and dolphins in waters near its operations, said it wanted a national approach to managing emissions.

Since Chevron invested in Wheatstone in 2011 under the original emissions condition, reinstatement of the carbon offset requirement would be unlikely to dent assumptions around the project’s economics.

Chevron is operator and 64% owner of Wheatstone, alongside Kuwait Foreign Petroleum Exploration Co (KUFPEC), Woodside Petroleum, Japan’s Kyushu Electric Power Co and JERA.

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