PERTH (miningweekly.com) – US energy major Chevron has struck a domestic gas sales agreement with mining major BHP’s Nickel West division for the delivery of natural gas from the Chevron-operated Wheatstone domestic gas facility.

Starting in July, Chevron would supply BHP Nickel West with a total of 22 PJ of equity domestic gas over the three-and-a-half-year term of the agreement.

Chevron Australia MD Al Williams said the agreement highlighted the important role of natural gas in powering critical industries, such as mining, across the state.

“Chevron is committed to delivering natural gas supplies to Western Australian homes and businesses, helping to power local jobs, industry and communities. As a reliable and cost-effective way to generate electricity, natural gas is a vital energy source for current and future energy needs of Western Australian industry.”

The Chamber of Minerals and Energy of Western Australia said the domestic gas sales agreement highlighted the important role of the state’s reliable and affordable gas supply in powering local businesses throughout Western Australia.

CEO Paul Everingham said access to reliable and affordable energy would help support Western Australia’s economic growth, which was essential following the devastating impact of Covid-19.

“The commencement of domestic gas deliveries from Chevron‘s natural gas facilities in the Pilbara has significantly benefited Western Australian households and businesses, as it provides a cost-effective supply of energy for decades,” he said.

“Western Australia enjoys a solid reputation for its secure domestic gas supply and this latest agreement will further strengthen our global standing.

“Thanks to Western Australia’s strong liquefied natural gas market, local businesses and industry are fortunate to access an affordable and consistent supply of energy well into the future.”

At full capacity, the Chevron-operated Gorgon and Wheatstone natural gas facilities will produce 500 TJ/d of domestic gas for the Western Australian market, enough to generate electricity for 4.3-million households.