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36 Chevron Corporation 2010 Supplement to the Annual Report
Upstream Gas
Gas
Chevron’s gas strategy is to commercialize the company’s equity natural gas resource base while growing a high-impact global gas
business. Significant progress was made in 2010 in reaching key milestones for the Gorgon and Wheatstone projects. In Africa,
construction continued at the Angola LNG and EGTL projects. Centers of excellence in gas commercialization, marketing and trading,
transportation, and power generation were leveraged to create value across all major segments of the enterprise.
2010 Activities
Angola LNG Angola LNG is an integrated natural gas utilization project encompassing offshore and onshore operations to commercial-
ize natural gas resources through LNG sales. Plant construction continued on schedule throughout 2010. For information on significant
project milestones, refer to page 22.
EGTL Chevron and the NNPC are developing a 33,000-barrel-per-day gas-to-liquids facility at Escravos that is designed to process
325 million cubic feet per day of natural gas from the EGP Phase 3A. For more information on this project, refer to page 24.
Gorgon The Gorgon Project comprises the development of natural gas production from fields in the Greater Gorgon Area off the
northwest coast of Australia and construction of LNG facilities on Barrow Island. For more information on the Gorgon Project, refer
to page 32.
NWS Venture Chevron has a 16.7 percent nonoperated working interest in the NWS Venture in Western Australia. The joint venture
operates offshore producing fields and extensive onshore facilities that include five LNG trains and a domestic gas plant. Progress
continues on several NWS Venture projects. For more information on these projects, refer to pages 32 and 33.
Olokola LNG Chevron has a 19.5 percent interest in the OKLNG affiliate in Nigeria. Plans have been developed to build a multitrain
natural-gas-liquefaction facility and marine terminal located northwest of Escravos. For more information on this project, refer
to page 24.
Wheatstone The Wheatstone Project comprises development of the Wheatstone and Iago offshore natural gas fields and an onshore
LNG and domestic natural gas plant. For more information on the development of this project, refer to page 33.
Natural Gas Marketing and Trading Chevron ranks among the top natural gas marketers in North America, with natural gas sales in
2010 averaging approximately 7 billion cubic feet per day. The company continues to build and develop long-term relationships with
producers, end-use natural gas customers, and storage and pipeline operators. Chevron has contracted capacity in a third-party pipeline
system, connecting the Sabine Pass LNG terminal to the natural gas pipeline grid. The pipeline provides access to two major salt dome
storage fields and 10 major interstate pipeline systems, including access to Chevron’s Sabine Pipeline, which connects to the Henry Hub.
The Henry Hub interconnects to nine interstate and four intrastate pipelines and is the pricing point for natural gas futures contracts
traded on the New York Mercantile Exchange.