gas midstream brochure

8/12/2019 Gas Midstream Brochure

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Gas and MidstreamUnlocking the Full Potential of Natural Gas


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Our world depends on clean natural gas to help meet growing

energy needs. The International Energy Agency estimates gasuse will grow over 50 percent through 2035, with demand in

Asian economies especially strong. Developing more of this

abundant and efficient resource is critical to help fuel the

global economy, curb carbon emissions and enhance the

quality of life worldwide.

Chevron: Your Natural Gas Partner


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Chevron is an established, global leader in integrated, multi-partner natural gas

projects, with multi-billion dollar developments under way in Africa, Australia,

China, Indonesia, North America, Vietnam and other locations. We produce

approximately 5 billion cubic feet per day from projects onshore and offshore,

tight formations, and shale and we are a recognized leader in safely developing

deep, high-pressure, high-temperature and sour reservoirs. Our operations

supply pipeline gas to industry, power plants and consumers worldwide. By

2020 we will be one of the largest producers of liquefied natural gas (LNG) in

the world and a major LNG shipper. Were also developing a major gas-to-liquids

project in Nigeria.

Today more than ever, successful natural gas developments require a clear focus

on the entire value chain. Through our upstream and technology businesses, we

offer world-class capability in exploration and resource development. Our Gas

and Midstream organization links the wellhead to the marketplace with expert

teams devoted to gas commercialization and marketing, shipping, pipelines, and

power generation. Chevrons global commitment to the disciplined application

of our Operational Excellence Management System ensures that every project

maintains a constant focus on safety for employees, contractors and neighbors.

Our culture and processes ensure that our facilities are designed and operated

to deliver reliable supplies of clean natural gas safely and efficiently, whileprotecting people and the environment.

Fueling generations to come with natural gas requires financially strong,

experienced companies with superior technology and a commitment to safety

and environmental stewardship. Most of all, natural gas development requires a

focus on mutually beneficial partnerships with host countries, customers, industry

and local communities and a commitment to shared investment in a secure

energy future. A proven partner and performer, Chevron sees tremendous

opportunities for profitable natural gas development throughout the world.


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Growing World Gas Supplies With Chevron

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With demonstrated capabilities across the natural gas value chain, Chevron is the premier gas

partner, helping host countries increase natural gas production and use. As we work to produceour proved gas reserves of more than 29 trillion cubic feet (Tcf), we see great potential to develop

our total unrisked resource base of more than 160 Tcf and to form new partnerships.

Tight Gas: United States

The Piceance Basin project in Colorado targets

3.5 Tcf of potentially recoverable gas.

Gas-to-Liquids: Nigeria

The Escravos GTL project will produce premium quality

low-sulfur diesel fuel and naphtha, transforming formerly-

stranded gas resources into valuable exports.

Natural Gas from Shale: United States

Since 2011, Chevron has acquired 1.5 million leased acres

of natural gas from shale. With comprehensive drilling

and appraisal programs, and future exploration potential,

Chevron continues to grow its portfolio.

Gas Commercialization: Nigeria

Chevrons Escravos gas project in Nigeria is helping to

end routine flaring and provide new energy for regional

markets and power plants.

Deepwater: United States

Major new Chevron projects in the Gulf of Mexico

will produce oil and gas, with more exploration and

projects on the horizon.

Pipelines: Africa

Chevron led multi-country negotiations and, with its

partners, built the 421-mile (678-km) West Africa Gas

Pipeline to supply Nigerian gas to neighboring countries.

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Sour Gas: China

Chevron is building the $4.7 billion Chuandongbei projectin Chengdu, China, leveraging our experience in safely

developing sour gas in the United States and Kazakhstan.

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LNG: Angola

A joint venture with Chevron, Sonangol Angolas

national oil company and other partners, Angola LNG

will commercialize natural gas that otherwise might

have been re-injected or flared.

8 Pipelines: United States

Chevron is a leading developer of essential gas

gathering and transport systems in the United

States, as well as supporting pipeline projects

for new oil and gas projects in deepwater

Gulf of Mexico.

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Power Generation

Chevron provides power plant development expertise,

including technical, regulatory, commercial and operational

capabilities, in support of power projects around the world.

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Exploration: Australia

Chevron has a highly successful exploration program

offshore Western Australia, adding to our extensive

natural gas resource base.

Gas-to-Power: Vietnam Block B

Chevrons Block B gas project is designed to supply

natural gas from the Malay Basin to existing and

proposed power plants in southern Vietnam.

Deepwater Gas: Indonesia

Gendalo-Gehem, Indonesias first ultra-deepwater

project, is expected to produce more than 1 billion cubic

feet (Bcf) of natural gas per day.

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LNG: Australia

The Chevron-led Gorgon project, which includes the worlds

largest CO2sequestration system, and the Wheatstone LNGand domestic natural gas projects, will enhance Asia-Pacific

and Western Australia energy supplies for decades.

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Conventional Natural Gas Production

We have ongoing significant natural gas production

in Australia, Bangladesh, Colombia, Gulf of Thailand,

Indonesia, Kazakhstan, Trinidad and Tobago, the

United States, and Venezuela.

Natural Gas from Shale: Exploration

In Canada and in parts of Central Europe, Chevron has

various stages of exploration activities under way for

potential development of gas resources.

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Photo: In 2011, Chevron added 1.2 Tcf of proved reserves

in the Marcellus Shale.

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Chevron: The Proven Global Gas Partner


As the leading international oil company in Asia-Pacific, Chevron deploys

a full range of technical capabilities to help increase the natural gas supplies

essential to growing economies. In Australia, Chevron is the operator of the giant

Gorgon and Wheatstone LNG and domestic natural gas projects, which are posi-

tioning Australia to become one of the worlds largest LNG exporters and a key,

long-term energy partner to Asian economies. Representing a combined capital

investment of $66 billion, with the initial phases designed to export around 24

million tons of LNG per year. Anchored by long-term supply contracts with Japanand other key Asian markets, the projects are expected to tap tens of trillions of

cubic feet of offshore reserves, create thousands of jobs, help drive the regional

economy and contribute billions of dollars in revenue to the government in the

decades ahead. We continue to explore for new gas supplies offshore, employing

state-of-the-art subsurface mapping technologies to pinpoint and evaluate targets

and new fields, drilling more than one dozen major discoveries since 2009. Were

also a partner in the North West Shelf Venture, which has exported LNG since 1989.

Focused on the full natural gas value chain, Chevron is a proven, long-term partner in gas

development. We combine exploration, development, transportation and market strategies tofind new resources and ensure long-term project stability and growth potential.


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In other parts of Asia-Pacific, weve become the largest gas producer in Thailand,

and our Platong II project, started up in 2011, will increase the countrys gas pro-

duction by 10 percent. Chevron is also the largest gas producer in Bangladesh,

fueling that nations power plants. Were applying our expertise in sour gas

development to Chinas Chuandongbei project, and in Vietnam, were working

to develop offshore fields to supply needed gas for power. The Gendalo-Gehem

deepwater gas project in Indonesia is expected to support both LNG exports

and domestic supply.

In North America, Chevron is a top U.S. natural gas supplier, marketer and

pipeline operator, producing around 1.3 billion cubic feet per day from California,

Colorado, Texas, the U.S. Gulf of Mexico and other areas. Were a leader in deep-

water gas development in the Gulf of Mexico; deep gas exploration and produc-

tion on the Gulf of Mexico shelf; and safe production and processing of sour gas.

Our company is a major developer of natural gas from the vast Marcellus Shale

in the Appalachian region and is exploring for shale gas on more than 250,000

acres in western Canada.

In Africa, were partnering with Sonangol on the development of the first

LNG export project in Angola. This complex of offshore and onshore facilities

is reducing gas flaring, optimizing gas-enhanced oil production and increasing

gas commercialization. In Nigeria, weve had upstream operations for more than

50 years. Currently, Chevron supplies gas domestically and also to neighboring

countries through the West Africa Gas Pipeline. In 2013, we expect to start up

our 33,000 barrel-per-day Escravos gas-to-liquids plant.

In Latin America, Chevron is the top natural gas producer in Colombia,

with more than 640 million cubic feet of daily production, and has interests in

producing gas fields offshore Trinidad and Tobago. In Venezuela, Chevron has

discovered significant offshore gas resources.

In Europe, Chevron is exploring for gas from shale formations in areas of

Central Europe, aiming to develop this vast resource with safe fracturing

technologies proved in the United States. The company is a long-time oil and

gas producer in the U.K. North Sea, contributing significant volumes to Britains

gas supply.

In Eurasia, complex gas re-injection facilities enhance liquids production at

our Kazakhstan projects, where we have developed industry-leading capability

in managing sour, high-pressure reservoirs.


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Globally, our shipping

and pipeline experts have been

instrumental in devising efficient LNG

transportation strategies for Australian and

Angolan LNG projects, and in negotiating terms and

plans for cross-border, multi-party gas pipelines in West Africa

and in the United States among others.

Chevron Global Power Company supports gas projects to connect to new

gas-to-power facilities in markets throughout the world. It also delivers self-

generation and cogeneration power solutions for Chevrons oil and gas projects

and refineries worldwide, and provides commercial development and technical

support. The group manages Chevrons interests in 12 joint-venture power

facilities, primarily cogeneration, in the United States, Thailand and Korea,

and owns a 16.5 megawatt wind farm in the United States.


The Sonangol Sambizanga, one of

three LNG carriers owned by Angolas

national oil company, Sonangol, and

managed by Chevron Shipping

Company. Chevron and Sonangol

mariners serve side-by-side on

the three vessels.


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Technologies for Every Gas Challenge


Chevron provides its natural gas projects with superior

technologies and top technical support at every link in thegas value chain, ensuring maximum resource recovery and

safe, reliable and efficient operations worldwide.

We focus specialists, teams and research on key areas such as exploration;

deep-water flow assurance; sour-gas processing; high-pressure wells; tight and

shale-formation fracturing; gas-to-liquids conversion; carbon capture and storage;

gas processing and treating; and LNG liquefaction, storage, transportation and

re-gasification. Our unique, integrated approach combines seasoned scientists

and engineers with strategic research, proprietary technologies, university

research partnerships and technical alliances with top service companies and

government institutions.

Around the world, our technology companies and research centers in Australia,

the United States and the United Kingdom provide strong support for our gas

projects and future technology needs. And our major gas projects are equipped

with new information technologies to enhance reservoir surveillance and

management, automate production systems and connect field operations to

central technical support centers around the clock.

To strengthen relationships and help build new generations of energy

professionals, Chevron shares our technical expertise with long-term country

partners, providing training, knowledge transfer and technology transfer.

Helping to see gas deep beneath Earths surface, Chevron uses three-dimensional

visualization models that enable drilling in complex environments.

Tri Energy Company is a Chevron jointly

owned 700 megawatt combined-cycle

power plant facility in Ratchaburi,

Thailand, that supplies electrical power

to Thailands National Power Authority

under a power purchase agreement.


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Building Communities;

Supporting Local Economies

Partnership means investing in people to develop strong,

sustainable local economies with healthy, thriving populations.

Chevron natural gas projects contribute to host communities by creating

jobs, purchasing goods and services, paying taxes and royalties, and creating

economic opportunities. We are committed to hiring, training and promoting

the local workforce and providing opportunities to gain experience in Chevrons

global operations.

We work with local leaders and nongovernmental organizations to support

schools and universities, job training, health and small-business development

programs. Our comprehensive Environmental, Social and Health Impact

Assessment process identifies, analyzes and develops ways to enhance gas

project benefits and mitigate environmental, social and health issues.

Protecting the health and safety of our workforce and the environment is a

core value at Chevron. Our Operational Excellence Management System guides

our work in safety, health, environment, reliability and efficiency. We promote

safety in the field, among contractors, on the road and in the office everywhere

we operate.

Protecting people is not just the way we do business, its part of our values who we are

as individuals and collectively as a company. Our goal is zero incidents always.

Chevron, in partnership with the govern-

ment of Indonesia and others, helped build

the Aceh Polytechnic to provide vocational

training in applied technology fields and

meet the needs of local industry.


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of alternate-energy sources or product substitutes; technological developments; the results of operations and finan-

cial condition of equity affiliates; the inability or failure of the companys joint-venture partners to fund their share

of operations and development activities; the potential failure to achieve expected net production from existing and

future crude oil and natural gas development projects; potential delays in the development, construction or start-up

of planned projects; the potential disruption or interruption of the companys net production or manufacturing

facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, severe weather

or crude oil production quotas that might be imposed by the Organization of Petroleum Exporting Countries; thepotential liability for remedial actions or assessments under existing or future environmental regulations and litiga-

tion; significant investment or product changes under existing or future environmental statutes, regulations and

litigation; the potential liability resulting from other pending or future litigation; the companys future acquisition

or disposition of assets and gains and losses from asset dispositions or impairments; government-mandated sales,

divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company

operations; foreign currency movements compared with the U.S. dollar; the effects of changed accounting rules

under generally accepted accounting principles promulgated by rule-setting bodies; and the factors set forth under

the heading Risk Factors on pages 29 through 31 of the companys 2011 Annual Report on Form 10-K. In

addition, such statements could be affected by general domestic and international economic and political

conditions. Other unpredictable or unknown factors not discussed in this presentation could also have material

adverse effects on forward-looking statements.

Certain terms, such as unrisked resources, unrisked resource base, recoverable resources, and oil in place,

among others, may be used in this presentation to describe certain aspects of the companys portfolio and oil and

gas properties beyond the proved reserves. For definitions of, and further information regarding, these and other

terms, see the Glossary of Energy and Financial Terms on pages 58 and 59 of the companys 2011 Supplement

to the Annual Report and available at Chevron.com.

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of Safe Harbor Provisions of

the Private Securities Litigation Reform Act of 1995: This brochure contains forward-looking statements relating

to Chevrons operations that are based on managements current expectations, estimates and projections about

the petroleum, chemicals and other energy-related industries. Words such as anticipates, expects, intends,

plans, targets, forecasts, projects, believes, seeks, schedules, estimates, budgets, outlook and

similar expressions are intended to identify such forward-looking statements. These statements are not guarantees

of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond

the companys control and are difficult to predict. Therefore, actual outcomes and results may differ materially from

what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance

on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required,Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new

information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking

statements are: changing crude oil and natural gas prices; changing refining, marketing and chemical margins;

actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness

Chevron Corporation

6001 Bollinger Canyon Road

San Ramon, CA 94583, USA

www.chevron.com

Produced by Chevron Gas and Midstream

2012 Chevron Corporation. All rights reserved.

(03/12-R) 5M

913-0449 (03/12-R)

Located in the Permian Basin

production region in West Texas,

the Keystone Gas Storage facility

is a high-deliverability salt-cavern

storage facility that connects to the

El Paso Natural Gas, TranswesternGas Company and Northern Natural

Gas Company pipeline systems.

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