Regional electricity provider Horizon Power has finalised a new natural gas supply agreement with energy giant Chevron, further securing the energy needs of remote Western Australian communities.
Set to commence on Jan. 1, 2027, the deal involves the sale of approximately 14 petajoules of gas over a five-year period.
The supply will be sourced from Chevron’s Gorgon and Wheatstone natural gas facilities in the North West, which possess a combined domestic production capacity of up to 530 terajoules per day.
The agreement reinforces Chevron's position as the state's largest supplier of gas for electricity generation.
Under Western Australia’s domestic gas policy, exporters are required to reserve 15% of their production for the local market.
Chevron Australia President Balaji Krishnamurthy stated that the deal underscores the ongoing role of gas in the state’s energy mix.
He noted that gas remains a critical, flexible source of energy, providing essential baseload power and acting as a necessary back-up for renewable energy sources during unfavourable weather conditions.
The announcement comes as Chevron continues to solidify its presence in Western Australia, following its 2023 move into a new 29-storey headquarters at Perth’s Elizabeth Quay.
The company currently employs approximately 4,000 people across its WA operations.