The stock of Chevron Corporation (NYSE:CVX) closed at $118.80 gaining 0.93% in yesterday’s trading session. Production is slowly taking root in the company’s Wheatstone LNG project in Western Australia. Experts have termed this a significant milestone for the oil company considering that the first cargo is set to sail in a matter of weeks.
The Wheatstone project owns about a 64.14% stake and Chevron happens to be its chief operator. Kuwait Foreign Petroleum Exploration Company holds the remaining interests. Chevron is also the sole operator of both the Iago and Wheatstone fields.The provider takes pride in being the owner of an 80.2% interest in the offshore licenses containing the Iago and Wheatstone fields. There are about 4.5 trillion cubic feet of gas deposits lying at the Wheatstone fields.
There are two liquefaction trains at the Wheatstone project with each shipping a capacity of about 8.9 million metric tons per year of LNG. At the moment, the first liquefaction train has already started its operations. If all moves according to plan, the second one might be kick starting operations in about six months.
This project serves Chevron and its partners with a window to serve the fast-paced economies of India and China along with other Asian countries. Last year, Gorgon started its operations and it is associated with a shipment capacity of 15.6 million metric tons yearly.
Chevron is happy with the fact that the major projects are already up and running .It will be expecting an improvement in cash flow which will help it to further expand its operations. These projects are set to help boost shareholders’ value as well as long-term growth in years to come. Chevron through a statement has outlined that by 2020 it will rise to become a major LNG supplier.
There are a series of LNG projects underway in Australia and the country hopes to succeed at overtaking Qatar which is at the moment the world’s highest LNG seller. In 2013, Australia was able to overtake Qatar as the topmost gas supplier in Japn.
The company’s spokesperson opined, “We are positive that we are going to achieve much more in the near future.”