Chevron has entered a long-term agreement to supply natural gas to Horizon Power, the state-owned electricity provider that serves remote and regional communities in Western Australia.
Under the deal, Chevron will deliver about 14 petajoules of gas over five years, with supply expected to begin in 2027. The agreement is aimed at strengthening electricity reliability and supporting the region’s energy security.
The gas will be sourced from Chevron’s stakes in three major projects in Western Australia- Gorgon, Wheatstone, and the North West Shelf.
Chevron operates both the Gorgon and Wheatstone developments, while the North West Shelf project is currently managed by Woodside Energy Group.
Chevron Australia president Balaji Krishnamurthy said the agreement demonstrates the company’s continued commitment to supporting the domestic gas market. He noted that natural gas remains an important part of the state’s energy mix, particularly in balancing electricity supply when renewable generation fluctuates.
Gas plays a crucial role in Western Australia’s power system because it can provide stable electricity production while also serving as backup when solar and wind output drops. Chevron is currently the largest supplier of gas for electricity generation in the state, with the Gorgon and Wheatstone projects together accounting for more than 40 percent of Western Australia’s gas supply.
The Gorgon project, located on Barrow Island, includes a domestic gas facility capable of processing 300 terajoules per day and three liquefied natural gas trains with a combined production capacity of 15.6 million tonnes per year. The project sources gas from offshore fields such as Gorgon and Jansz-Io.
In December 2025, Chevron approved a $2.09 billion investment for the next phase of development at Gorgon, known as Stage 3. The expansion will bring the Geryon and Eurytion fields online and link them to existing infrastructure, increasing the project’s long-term production capacity.
The Wheatstone project, located on the Pilbara coast, supplies up to 200 terajoules of gas per day to the domestic market and operates two LNG processing trains with a combined capacity of 8.9 million tonnes annually. Gas for the facility comes from offshore fields including Brunello, Iago, Julimar and Wheatstone.
Meanwhile, the North West Shelf project has two domestic gas processing trains and four LNG trains with a total output of 14.3 million tonnes per year. Chevron is expected to exit the project by the second half of 2026 as part of an asset swap agreement with Woodside.
The Horizon Power supply deal is expected to reinforce Western Australia’s energy infrastructure by ensuring stable gas deliveries for electricity generation. Chevron said its ongoing investments in projects such as Gorgon and Wheatstone will help maintain reliable energy supplies while supporting the integration of renewable power into the grid.
