Chevron Corp said Friday it had signed an agreement to supply about 14 petajoules of natural gas over five years to Horizon Power, a power utility serving Western Australia.
The volumes will come from the stakes of the United States energy giant in three projects in Western Australia: Gorgon and Wheatstone, both operated by Chevron, and North West Shelf. Deliveries are to start 2027.
“The agreement with Horizon Power reflects Chevron’s continued commitment to supplying gas to the domestic market and underscores the ongoing role for gas in the state’s energy mix”, Chevron Australia president Balaji Krishnamurthy said in a company statement.
“As a flexible source of energy, gas plays a crucial role in supporting baseload electricity generation as well as a back-up for when weather conditions impact renewable power generation”.
“Through its suite of equity and jointly held gas sales agreements, Chevron is the largest supplier of gas for electricity generation in Western Australia”, Chevron said in the statement on its Australian website.
Gorgon and Wheatstone provide over 40 percent of the state’s gas supply, according to Chevron.
Gorgon includes a domestic gas plant with a capacity of 300 terajoules a day (TJd) and three liquefaction trains with a combined production of up to 15.6 million metric tons per annum (MMtpa) of liquefied natural gas, according to Chevron. Located on Barrow Island, it is fed by the offshore Gorgon and Jansz-Io fields.
Late last year Chevron announced a AUD 3 billion ($2.09 billion) final investment decision to proceed with Gorgon Stage 3.
The first in a planned series of tiebacks, Gorgon Stage 3 will develop the Geryon and Eurytion fields in the Greater Gorgon Area by connecting them to existing subsea gas gathering infrastructure and processing facilities on Barrow, Chevron said in a statement December 5, 2025.
Meanwhile Wheatstone produces up to 200 TJd for the domestic market. It also has two LNG trains with a combined capacity of 8.9 MMtpa, according to Chevron. Located on the Pilbara coast, Wheatstone processes gas from the offshore Brunello, Iago, Julimar and Wheatstone fields.
North West Shelf, operated by Australia’s Woodside Energy Group Ltd, has two domestic gas processing trains. It also has four LNG trains with a collective capacity of 14.3 MMtpa, according to Woodside. It processes gas from the Angel, Goodwyn, North Rankin and Perseus fields off the coast of Karratha.
An asset swap between Chevron and Woodside involving North West Shelf and Wheatstone, agreed 2024, is on course for completion in the second half of 2026, Woodside affirmed in its report of 2025 results published February 24, 2026. Chevron will exit North West Shelf and increase its stake in Wheatstone as a result of the transaction.
To contact the author, email jov.onsat@rigzone.com
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