Woodside strengthens LNG portfolio with Chevron asset swap

Global energy company Woodside has acquired Chevron’s interest in the North West Shelf (NWS) liquefied natural gas (LNG) project, one of the largest projects of its type globally.

Woodside has also acquired Chevron’s assets in the NWS Oil project and the Angel Carbon Capture and Storage (CCS) project. In return, Woodside will transfer its interest in both the Wheatstone and Julimar-Brunello Projects to Chevron.

Chevron will also make a cash payment to Woodside of up to $400m.

Specifically, the proposed transaction will see Woodside transfer its 13% non-operated interest in the Wheatstone Project and 65% operated interest in the Julimar-Brunello Project and will acquire in exchange Chevron’s 16.67% interests in the NWS Project and the NWS Oil Project and a 20% interest in the Angel CCS Project.

Meg O’Neill, CEO of Woodside, said, “The strategic and commercial rationale for the asset swap is compelling. This transaction simplifies our portfolio, improving our focus and efficiency by consolidating our position in our operated LNG assets.”

NWS project

The NWS project is operated by Woodside on behalf of a joint venture that includes several other partners, one of which is Chevron. The project started production in 1984 and is one of Australia’s largest and oldest LNG operations.

During its lifespan, the project has been a major supplier to LNG markets in the Asia Pacific region and has a processing capacity of around 16.9 million tonnes per annum (mtpa) of LNG.

The NWS Oil project is a complementary component of the NWS project.

Angel CCS project

The Angel CCS project is a proposed CCS hub in Western Australia. The facility is designed to process up to five million tonnes of CO₂ per annum, positioning it among the largest CCS hubs in the Asia-Pacific region.

Plans include developing a CO2 gathering system to collect emissions via new pipelines from onshore emitters or through imports via ships. The CO2 would then be transported to a central compression facility before being piped offshore for injection into the subsea geological formation.