Chevron sells Australian LNG stake

CHEVRON is selling its stake in Australia’s North West Shelf, the county’s biggest liquified natural gas (LNG) project.

According to Reuters, the 30-year old project is expected to run out of gas in the next few years and is shifting towards an LNG processing facility for third parties. The A$34bn (US$23bn) facility is owned equally by BHP, BP, Chevron, Japan Australia LNG, Shell, and Woodside. Chevron will sell its 16.7% stake as part of plans to sell natural gas assets, according to S&P Global. The stake is believed to be worth A$4.3bn–5.8bn, according to The Australian. Chevron said that it has been approached by a number of buyers. Woodside is thought to be the most likely buyer, according to a David Low, Senior Analyst at Wood Mackenzie, as reported by S&P Global.

The Australian reported that Ann Pickard, Director of Woodside Petroleum, said that other energy majors could also exit the LNG project.

Chevron said that it will continue with the Gorgon and Wheatstone LNG projects and has just announced an agreement with BHP Nickel West for the delivery of natural gas from Wheatstone.