SAN RAMON, Calif., June 28, 2006 -- The Chevron operated Northwest Swan liquefied natural gas (LNG) vessel is today offloading its first cargo of Australian LNG at the newly commissioned Guangdong LNG facility, the first terminal to receive natural gas in its liquefied form in China. The natural gas was produced by the North West Shelf Venture from its fields offshore Western Australia.
To celebrate the official commissioning of the terminal, key government officials including Chinese Premier Wen Jiabao, Australian Prime Minister the Honorable John Howard and Western Australian Premier, the Honorable Alan Carpenter, are today attending a ceremony at the new LNG facilities in the Guangdong province.
"We are proud that Chevron can participate in both supplying and shipping the first commissioning cargo of LNG to China," John Gass, president of Chevron Global Gas, said. "In 20 years, Asia is expected to account for 25 percent of world's growth in natural gas demand, and LNG will play an increasingly important role in meeting the region's energy needs."
Gass added, "Chevron is well positioned to meet growing natural gas needs in Asia. We are a top resource holder and top-tier natural gas producer in the Asia-Pacific region."
Chevron, through its Australian subsidiary, is an equal one-sixth participant in the North West Shelf Venture, which began LNG production in 1989 at onshore facilities in Western Australia and markets LNG to customers in Asia. The other participants are BHP Billiton Petroleum (North West Shelf) Pty Ltd., BP Developments Australia Pty Ltd., Japan Australia LNG (MIMI) Pty Ltd., Shell Development (Australia) Proprietary Ltd., and Woodside Energy Ltd. (operator). CNOOC NWS Private Limited is also a member of the North West Shelf Venture but does not have an interest in the North West Shelf Venture infrastructure.
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Chevron is the largest resource holder among our peers in the Asia Pacific region; and in Australia, we are the top holder of natural gas resources and hold a superior exploration lease position.
Northwest Swan is the ninth and largest vessel in the fleet serving the North West Shelf Venture (NWS). The ship is operated by Chevron Transport Corp. Ltd. LLC. Unlike the NWS's other eight ships that are equipped with spherical tanks, the Northwest Swan uses a membrane containment system. The vessel has a length of 287 metres, a beam of 43.4 metres, a draught of 11.5 metres and a capacity of 138,500 cubic metres, as compared to 125,000 cubic metres in the existing fleet. The NWS Venture was selected by China to be the supplier of LNG for the Guangdong LNG Terminal. The Venture has a 25-year LNG Sale and Purchase Agreement (SPA) for approximately 3.9 trillion cubic feet of natural gas.
LNG delivered to the Guangdong LNG terminal by the NWS Venture is expected to be used in Shenzhen, Dongguan, Guangzhou and Foshan in the Pearl River Delta, and Hong Kong, as well as by five power plants in the Delta region.
The Northwest Swan departed the Karratha gas plant in Australia earlier in the month and it takes approximately seven days to complete the 5500 kilometer journey to the Guangdong LNG terminal in China.
The NWS comprises the North Rankin, Goodwyn, Perseus and Echo Yodel producing natural gas fields and the Wanaea, Cossack, Lambert and Hermes producing crude oil fields.
Total daily production from the project during 2005 averaged 101,000 barrels of condensate (17,000 barrels net to Chevron), 2.2 billion cubic feet of natural gas (360 million net cubic feet), 86,000 barrels of crude oil (14,000 net barrels) and 28,000 barrels of LPG (5,000 net barrels).
The NWS Venture currently is in the process of adding a fifth LNG production train, raising total production to over 16 million metric tons per year, and enjoys strong long term relationships with customers in Japan and Korea.
Chevron Corporation is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com.