PERTH (miningweekly.com) – First liquefied natural gas (LNG) production from the $29-billion Wheatstone project has been delayed by about six months, with first production now expected in mid-2017.
US oil and gas major Chevron reportedly told shareholders last week that the delay was caused by the slow schedule of construction of plant modules in Malaysia.
Australian oil and gas miner Woodside, which in April last year acquired a 13% interest in Wheatstone, said on Monday that impairments foreshadowed in the company’s quarterly reports had taken into account the potential for a revised schedule at the Wheatstone onshore plant.
Woodside pointed out that the Julimar project, in which it held a 65% equity interest, and which would supply gas to the Wheatstone onshore plant, remained on schedule and on budget.
Woodside also moved to placate stakeholders in the Wheatstone project, saying that delivery commitments under LNG sales agreement would be met under the revised production schedule.
Wheatstone is located 12 km west of Onslow, in Western Australia, and would consist of two LNG trains with a combined capacity of 8.9-million tonnes a year, along with a domestic gas plant.