Issue 5, September 2011
Wheatstone Project Community Bulletin
Inside
The Road to FID
Page 2
Message from the General Manager
Page 3
Environmental Green Light for
Wheatstone
Page 5
Engaging the Onslow Community
Page 6
Wheatstone Project Seeks to Enhance
Australian Content
Page 7
Hooley Creek Alternative
Page 7
The Wheatstone Project plant site at Ashburton North.
Wheatstone Gets Final Go-Ahead
The Wheatstone Project has reached its most important milestone so far. In September, Chevron
Australia and its joint venture participants announced official endorsement of Wheatstone with a
Final Investment Decision (FID).
The Wheatstone Project was granted
government approval for a 25 million
tonne per annum (mtpa) liquefied
natural gas (LNG) and domestic gas
plant at a ceremony in Perth.
Chevron Australia Managing Director
Roy Krzywosinski said the Wheatstone
Project would boost Australia’s position
as a major LNG player on the world
energy stage.
“The Wheatstone Project will deliver
energy, jobs and economic benefits to
Australia for decades.
“Chevron has been in Australia for
almost 60 years and with our two
megaprojects Wheatstone and Gorgon
now both underway, we are committed
to Australia for the long term.”
This will be Australia’s first-ever LNG
“hub,” processing gas from third-party
suppliers. The concept takes a long-term
approach to keeping the country’s LNG
sector producing for generations to
come, while minimising the environmental
footprint that would be needed for new
projects.
FID unlocks the funding needed to start
site construction activities and Chevron’s
contribution to social infrastructure
and facilities in Onslow. Under the
recently announced State Development
Agreement, Chevron has committed
approximately $200 million to social
infrastructure projects. This will include:
• Power upgrades
• A desalination plant
• Waste and waste water management
• Health services upgrade including
dental clinic
• Expansion of school and childcare
facilities
• Emergency services expansion
• Initial works and maintenance, and
post construction upgrade of Onslow
Road
• Land development costs
• Housing for government services
employees.
continues page 2
Wheatstone Project
From Page 1
Wheatstone Project General Manager
Brian Smith said, “Together with the State
Government and the Shire of Ashburton,
Chevron will be making significant
investments over many years in and around
Onslow.”
While some of these projects will start
this year, the timing and scope of the
infrastructure program is yet to be finalised.
Chevron will contribute approximately
$66 million to upgrade Onslow facilities
including:
• A picnic and playground area at Four
Mile Creek
• An aquatic and recreational centre
• Planning, design and construction of
the Onslow Ring Road
• Old Onslow conservation and tourism
development
• Town master plan and improvements
• Onslow Airport
• A community development fund
including $5 million at FID then $1.5
million annually for the ten years after
construction.
From left: Nizar Al-Adsani, Chairman and Managing
Director, Kuwait Foreign Petroleum Exploration Company;
Ann Pickard, Country Chair Shell in Australia / Executive
Vice President Upstream Australia, Shell; Thomas Maher,
Australia Region Vice President and Managing Director,
Apache Energy; Roy Krzywosinski, Managing Director,
Chevron Australia; George Kirkland, Vice Chairman &
Executive Vice President of Upstream and Gas, Chevron
Corporation; The Hon Colin Barnett MLA, Premier of
Western Australia, Minister for State Development;
The Hon Martin Ferguson AM MP, Minister for Resources
and Energy, Minister for Tourism; The Hon Norman
Moore MLC, Minister for Mines and Petroleum, Fisheries,
Electoral Affairs; The Hon Brendon Grylls MLA, Minister
for Regional Development, Lands, Minister Assisting the
Minister for State Development.
The Road to FID
August 2004 – Chevron discovered the
Wheatstone gas field.
March 2008 – We announced our
intention to develop the wholly owned
WA-17-R and WA-253-P petroleum
titles as a greenfield onshore LNG and
domestic gas project.
June 2008 – We identified three
potential sites for further investigation.
September 2008 – We began the
environmental approval process.
December 2008 – We announced
Ashburton North as the preferred site.
February 2009 – We submitted the
Environmental Scoping Document.
March 2009 – We began engineering
and environmental studies on the
Ashburton North site.
May 2009 – We announced a two-train
LNG development for the first phase.
August 2009 – We began the Front-End
Engineering and Design phase.
October 2009 – Local subsidiaries of
Apache Corporation and Kuwait
2 | CHEVRON AUSTRALIA
Foreign Petroleum Exploration Company
(KUFPEC) signed agreements to join the
project as natural gas suppliers.
July 2010 – We signed a Heads of
Agreement with the Thalanyji People of
Onslow, for land required to develop the
Wheatstone liquefied natural gas and
domestic gas project.
July 2010 – We released the draft
Environmental Impact Statement (EIS) /
Environmental Review and Management
Programme (ERMP), which was available
for public comment from 26 July to 4
October 2010.
April 2011 – Shell Development
(Australia) signed agreements with
Chevron to bring them into the project
as a gas supplier and equity participant.
Shell will assume an 8 percent
participating interest in the Wheatstone
and Iago natural gas fields, and a 6.4
percent participating interest in the
project facilities.
June 2011 - Chevron welcomed the
Environmental Protection Authority
report on the Wheatstone Project.
July 2011 – Tokyo Electric Power Company
(TEPCO) signed a Sales and Purchase
Agreement (SPA) for the delivery of 3.1
million tonnes per annum of LNG from the
Wheatstone Project for a period of up to
20 years.
August 2011 – Chevron welcomed
the Western Australian Government
Environmental Approval for the
Wheatstone Project.
September 2011 – Kyushu Electric Power
Company signed a Sales and Purchase
Agreement to take delivery of 0.8 million
tonnes of LNG per annum including a 1.83
percent equity share in the Wheatstone
Field Licences and a 1.46 percent equity
share in the onshore processing facilities.
Chevron welcomed the Australian
Commonwealth Government
environmental approval for the
Wheatstone Project.
State Development Agreement is
finalised.
A Final Investment Decision is announced
on September 26.
Message from the General Manager
It’s been a year since I came on board as the General Manager of the Wheatstone Project and I am
thrilled to have steered this project to a final investment decision.
When I arrived in Australia last
September, the road to getting
Wheatstone to the execution phase was
very challenging. I visited Onslow to get a
feel for your community and to get a first
hand view of the site at Ashburton North.
Despite the technical issues with the site,
I was confident we could deliver a worldclass LNG facility.
Wheatstone’s rigorous environmental
assessment was the result of three years’
preparation, including the research and
contributions of numerous independent
experts, community consultation and
continuous engagement with a range
of government agencies. This Project
is expected to set new benchmarks in
engineering, design and environmental
management.
will grow very quickly. We will start
building a camp for the construction
workforce.
a celebration at Onslow with the local
community and the local Aboriginal
People.
With the State Government, Chevron will
be making significant investments into
the Onslow community for many years to
come.
Please raise any issues you are
concerned about with our Chevron
representatives in Onslow or through
the Community Reference Group. I am
happy to respond to your questions. I
am committed to building productive,
collaborative and beneficial relationships
with organisations throughout the
Pilbara to help your community
and others prosper.
The Wheatstone Project is also working
hard to realise local content opportunities
for Western Australian industry. We will
always consider, and where possible,
give preference to the use of Australian
labour, services and materials when price,
quality, delivery and service are equal to
or better than other alternatives.
In the next few weeks we will have
Once again, thank-you for helping
us bring Wheatstone to this exciting
new phase.
We could not have reached this point
without the input of the Onslow
community, the Shire of Ashburton,
and the Thalanyji People.
I thank all the people who have had input
into the Wheatstone Project through the
Community Reference Group, attending
our Environment Open Days, and
commenting on our environmental work.
For Chevron and our Joint Venture
Participants – Apache, Kufpec and
Shell – reaching the execution stage
is a monumental milestone. We are
positioned to become Australia’s first
LNG hub which will be an important pillar
of your community and the Australian
economy for the next 40 years.
From here, Bechtel will begin
construction and this will bring changes
to Onslow. The Wheatstone workforce
Wheatstone Project General Manager Brian Smith (centre) with from left Wheatstone Joint Venture
Manager Sean Mahony, Legal Counsel Peter McNally, Senior Counsel Schellie-Jayne Price, Legal
Contracts Consultant Bill Harvey and Vice President - Commercial, CAPEP Barry Andrews.
Chevron contacts
In Onslow, Chevron is leasing a yard in the industrial area as a Wheatstone
site office. Chevron’s Person-In-Charge (PIC) is based there. Justin Baulch
or John Owens, the two PICs, can be contacted on 0409 683 168 if you want
information about Chevron activities in Onslow. For more information on the
Wheatstone Project or to be involved in our consultation program contact:
Mike Edmondson
Chevron External Affairs Advisor
250 St Georges Terrace, Perth WA 6000
Phone: (61) 8 9216 4677 Mobile: 0411 105 910 Fax: (61) 8 9485 5689
Email: [email protected]
Wheatstone Project Community Bulletin | 3
Printed using vegetable inks on 100% recycled post consumer waste.
Onslow is
About to
get Busier
Illustration of Wheatstone Plant site (looking south).
The recent Wheatstone Financial Investment Decision (FID) unlocks the funding needed to
commence site construction activities. To date site activities have supported the engineering
design and approvals processes for the Wheatstone gas plant.
“The priority activities in the first
12 months of construction will be
establishing beds, roads and water
supplies,” Wheatstone Project Director
Chris Miller said.
“This means beginning work on the
construction camp site, about 25km
south-west of Onslow, building or
upgrading the roads needed to support
our larger construction activities and
finding suitable water for camp and
construction use.”
The first site works are planned to begin
before the end of this year. Construction
materials should begin arriving in the
Onslow area by November ahead of the
establishment of a 100-person mobile
camp at the construction site. Once the
mobile camp is established workers will
build a footprint for the construction
village at the Ashburton North Strategic
Industrial Area (ANSIA).
power and water supplies and waste
treatment facilities.
Chevron’s first development application
to the Shire of Ashburton will help
progress initial Wheatstone construction
works. This development application
outlines the proposed works and contains
some of the impact mitigation, measures
such as traffic management.
Until an access road linking the
construction village to the plant site is
built, there will be more traffic on the
Minderoo-Twitchen and Old Onslow roads.
Shire, Main Roads WA and BHP Billiton
on strategies to help make these roads
safer for road users during construction
activities.
BHP Billiton is constructing some of the
site access road (between the Onslow-Mt
Stuart Road and the Macedon plant site),
but Chevron will need to extend that road
north to the Wheatstone plant site before
traffic can be diverted from MinderooTwitchen and Old Onslow roads.
Chevron has worked closely with the
Another geo-technical campaign is also
expected to begin on the plant site at
Ashburton North by the end of the year.
Three land rigs will be used for the work
and about 30 associated workers will be
accommodated in Onslow. This campaign
is planned to last about four months.
While the construction site itself is a long
way from Onslow, there will be some
impacts in the town, including more
activity on the roads, at the service
stations and at the supermarket.
Chevron is working with the State
Government and Shire of Ashburton
to help reduce some of these impacts
by paying for upgrades to some roads,
4 | CHEVRON AUSTRALIA
The Wheatstone project will become the first LNG hub in Australia used by third party gas providers.
Environmental Green Light
for Wheatstone
Environmental approval of the Wheatstone Project, required under both State and Commonwealth
legislation, marked the last remaining milestone on the path to a final investment decision (FID)
and the start of the project’s construction phase.
Chevron has received environmental approval
for a 25 million tonne per annum (mtpa) liquefied
natural gas (LNG) facility and associated domestic
gas plant, along with associated offshore
infrastructure. The foundation project involves a
two-train LNG facility with a combined processing
capacity of 8.9 mtpa, and a domestic gas plant.
The environmental green light follows an
exhaustive three-year marine and terrestrial
environmental impact assessment involving more
than 625,000 person-hours. The assessment
scrutinised impacts to the onshore and offshore
habitats of the Wheatstone Project area, which
includes dune systems, mudflats, mangroves,
corals and seagrass, and nearshore islands. The
marine species known to occur there include
marine turtles, dugong, humpback whales,
dolphins, and about 55 species of fish.
The assessment process involved research
and contributions from numerous independent
experts, community consultation and continuous
engagement with a range of government
agencies. Chevron produced an 8000-page
document describing the project in detail and
examining the likely environmental effects along
with how these could be managed. After the Draft
EIS/ERMP (Environmental Impact Statement/
Environmental Review and Management
Programme) was published, a public review and
comment period and the release of the Final EIS/
Response to Submissions on the ERMP followed.
In June, the State’s peak environmental body,
the Environmental Protection Authority (EPA),
recommended conditional approval of the
Wheatstone Project.
Environmental Approvals:
How we got there
SEPTEMBER 2008 – Wheatstone Project referral
The site’s scale and complexity and its proximity to sensitive receptors
meant that a stringent review by regulators was required.
JULY 2010 – Draft EIS/ERMP published
Describes the proposal and examines the likely environmental effects
and the environmental management procedures proposed. It attracted
32 submissions containing 550 comments.
MARCH 2011 – Final EIS/Response to Submissions on the ERMP
published
Chevron’s response to key issues raised in public and government
agency submissions on the Draft EIS/ERMP.
JUNE 2011 – Environmental
Protection Authority (EPA)
issues its report on the project,
recommending conditional
approval.
AUGUST 2011 – Appeals
Convenor issues appeals report.
State Environment Minister
determines the appeals. State
Government gives environmental
approval.
SEPTEMBER 2011 –
Chevron is required to meet a range of
stringent environmental conditions.
A $13 million environmental offsets
package includes $3.5 million over
four years to improve management of
critical habitats for humpback whales,
dugongs and snubfin dolphins in
Pilbara waters.
The conditions also include reductions
in greenhouse gas emissions through
offsetting approximately 2.6 million
tonnes per year of reservoir carbon
dioxide emissions.
Under the stringent conditions imposed, Chevron
is required to undertake a range of environmental
monitoring and management plans to protect
marine fauna and limit the impact to coral reefs.
Federal Government gives
environmental approval.
The project has undergone a rigorous and
thorough assessment and the conditions will
result in reduced environmental impacts,
consistent with Chevron’s commitment to
environmental management and stewardship.
of Environmental Management Plans.
POST SEPTEMBER 2011 – Secondary approval includes a series
Environmental management plans required as part of the State
and Commonwealth ministers’ conditions include monitoring and
management of potential impacts resulting from the construction and
operation of the Project.
Wheatstone Project Community Bulletin | 5
Earbus audiometrist Anne O’Leary treats a young Pilbara patient.
Engaging the Onslow Community
As the Wheatstone Project gathers pace so does Chevron’s commitment to building productive
and trusting relationships with our communities.
“We’re looking for partnerships that will
benefit Chevron and the community, and
we’ve got a lot of people here, on the
ground, working hard to achieve these
outcomes,” Wheatstone Project External
Affairs Manager Graeme Harman said.
As part of our community engagement,
we focus on health and social well-being;
education and training; the environment;
small and medium enterprise; and arts
and culture/civic and community.
For the Wheatstone Project, our regional
community investment programs are
focused on Onslow.
The Community Spirit Grants
program provides vital funding to
the communities closest to Chevron
Australia’s offshore operations including
Karratha, Dampier, Onslow, Roebourne
and Exmouth.
Since 2006, Pilbara towns have received
almost $400,000 in funding through the
program.
6 | CHEVRON AUSTRALIA
The grants support elements that are the
essence of a thriving local community,
such as families and children, sport,
volunteers and the environment.
“The program is aimed at encouraging
small grass-roots projects and ideas
that would gain some momentum from a
grant of this size,” Mr Harman said.
In the Onslow community, 2010 grant
recipients included the Onslow Sports
Club, the Onslow Chamber of Commerce
and Industry Home and Community
Care, and the Onslow Volunteer Marine
Rescue Group.
Last year, we began a partnership with
Telethon Speech and Hearing which will
provide much-needed health support to
children in the Pilbara.
The Telethon Speech and Hearing Bus
will visit Onslow later this year, providing
week-long testing for middle-ear disease.
The Passion of the Pilbara festival, held
in Onslow in July, provided family fun
to the community with celebrity chefs,
amusement rides, a magic show and
gardening workshops.
In Onslow, we supported the Onslow
Primary School’s NAIDOC Week
celebrations with a lunch of kangaroo
stew, kangaroo tails, damper and johnny
cakes (a type of fried bread) cooked
fresh on school grounds by Aboriginal
school staff.
Aboriginal elders of the community
attended the luncheon, and the
event was a success due to the work,
co-operation and local knowledge of
those involved.
Also as part of NAIDOC Week, the first
football game under lights in 30 years
was played in Onslow and included
former West Coast Eagles star player
Peter Matera.
The game was organised by the
V-Swans, a community initiative
designed to engage local youth in
football and supported by Chevron and
the Thalanyji people.
Pictured at Old Onslow are (from left):
Wheatstone Joint Venture Manager Sean
Mahony, Shell’s Gorgon and Wheatstone VicePresident Chris Kennett, Wheatstone Project
Director Chris Miller, Shell’s Gorgon and
Wheatstone Technical Lead Doug Blacklock and
Shell Communications Advisor Melinda Hayes.
Wheatstone Project Seeks to
Enhance Australian Content
With the Wheatstone Project now transitioning to its
construction phase, the Australian Industry Participation
(AIP) team is working to increase opportunities for local
companies wanting to get involved.
Hooley Creek
Alternative
Members of Chevron’s Onslow
Community Reference Group
have queried how Hooley
Creek will be accessible by
land once construction on
the Wheatstone gas plant site
begins.
Independent modeling estimates the
Project will spend about $17 billion on
Australian goods and services. In fact,
about $850 million has already been
committed - and the figure continues
to grow.
WA Chamber of Commerce’s Project
Connect, ePilbara, and Bechtel’s
Vendor Portals to advertise upcoming
contracting and procurement
opportunities on an online vendor
registration system.
Wheatstone Project Director Chris
Miller said the Project was focused
on ensuring local companies receive
full, fair and reasonable opportunity
to supply goods and services to the
Project.
“By partnering with local businesses on
the supply of goods and services, the
flow-on benefits to the Australian and
Western Australian economies will be
maximised,” he said.
or coastal access to Hooley Creek once
Australian vendors interested in
participating in the Wheatstone Project
can monitor the ProjectConnect web
portal (www.projectconnect.com.
au) to identify tendered packages
relevant to their capabilities. They can
register interest as either full-package
or component-package participants.
ICN WA plays an important role in
reviewing and recommending capable
vendors into the Project. Interested
participants should ensure that ICN
WA (www.icnwa.org.au) is familiar with
their capabilities. They can do this by
ensuring their company profiles are up
to date on ProjectConnect or, if based
in regional centres, on the relevant
regional industry capability directory,
such as www.epilbara.com.au.
with BHP Billiton, the Urala pastoral
“We will always consider, and where
possible preference, the use of
Australian labour, services and
materials when price, quality, delivery
and service are equal to or better than
other alternatives,” he said.
“We are working very closely with
the Industry Capability Network
(ICN) and the WA Chamber of
Commerce to ensure the Project
and its key contracting partners
work to identify capable Australian
vendors for consideration in each of
our procurement and contracting
packages.”
In addition, Chris Miller said the Project
was incorporating the services of the
The Shire of Ashburton has requested
that Government agencies and
companies involved in the development
of the Ashburton North Strategic
Industrial Area seek alternative creek
construction on the site begins.
To this end the Department of State
Development has been in discussions
lease holder, to explore coastal or creek
access alternatives to current land
access to Hooley Creek.
The Department of State Development
discussed possible alternatives with
Onslow locals and sought their views
at a two-day workshop held in Onslow
in late August.
Inquiries about alternative access to
other coastal or creek areas once
Hooley Creek land access is closed
should be directed to Quentin White
from the Department of State
Development – Ph: 9222 0733or via
[email protected]
Wheatstone Project Community Bulletin | 7
Working Together for
Tomorrow’s Energy Needs
At Chevron, the word “partnership” means a lot to us.
With our joint venture participants – Apache, Kuwait Foreign Petroleum Exploration Company and Shell
– we are proud to announce the final go-ahead for the Wheatstone liquefied natural gas and domestic
gas project at Ashburton North on the Pilbara coast of Western Australia.
The Wheatstone vision was achieved with the close cooperation of government, the local community,
our partners and customers.
Together, we’re building a world-class natural gas hub which will deliver cleaner-burning energy to
Australia for decades to come – creating about 6,500 direct and indirect jobs at peak construction,
injecting an estimated $17 billion into Australian businesses and services in addition to $20 billion into
government revenue over the life of the project 1.
We’ve been in Australia for a long time and with our two mega-projects Wheatstone and Gorgon now
both underway, we’re looking forward to continuing to build on this legacy for decades to come.
chevronaustralia.com
IMAGE - During the planning process of the Wheatstone Project, extensive environmental surveys were conducted.
Pictured are marine biologists conducting intertidal surveys in the Indian Ocean adjacent to the site of the Chevron-operated project.
1
ACIL Tasman independent modelling (2011)
CHEVRON, the CHEVRON Hallmark and HUMAN ENERGY are registered trademarks of Chevron Intellectual Property LLC. ©2011 Chevron U.S.A. Inc. All rights reserved.