Replies to post #5248 on 3rd Leg Trading

[C C]

Chevron starts LNG production at Wheatstone Train 1

Chevron (CVX +1.1%) says it has started producing liquefied natural gas at its Wheatstone project in Western Australia and plans to ship its first cargo in the coming weeks.
CVX originally had hoped to start exporting from Train 1 of the $34B Wheatstone project in the middle of this year; Train 2 is expected to be brought onstream in 6-8 months, which will take the project up to its full capacity of 8.9M metric tons/year of LNG.
"Together with Wheatstone, several new LNG trains such as Yamal LNG, Cove Point and Train 4 from Sabine Pass will ramp up or start up production by year-end, [which] will sow the seeds for strong production through winter 2017-18, pushing the market into increasing overcapacity as we move into the summer of 2018,” says Nicholas Browne, head of Asia gas and power research at Wood Mackenzie, who expects prices to dip below $6/MMBtu once winter is over.



cc