Chevron Corp (NYSE:CVX) shares are trading higher today. The company, through Chevron Australia New Ventures, has been granted a greenhouse gas (GHG) assessment permit offshore Western Australia.
The permit involves a joint venture with Chevron as the operator, holding a 70% interest, and Woodside Energy Group Ltd – ADR (NYSE:WDS) with a 30% interest.
Chevron will transfer 5% of its stake to GS Caltex (GSC) of Korea, pending regulatory approvals and other conditions.
The G-18-AP permit, located offshore from Onslow, Western Australia, spans about 8,467 km2 with depths ranging from approximately 164 feet to 3,281 feet (50 to 1,100 meters).
The area will be used to evaluate a hub for storing third-party emissions, including those from Chevron's LNG assets.
This award complements Chevron's existing non-operated interests in blocks G-9-AP, G-10-AP, and G-11-AP and adds to its operations at Gorgon CCS, which has now captured and stored 10 million tonnes of CO2 equivalent.
Chris Powers, vice president of CCUS and Emerging for Chevron New Energies, said, "Chevron, along with our joint venture participants, have a unique set of assets, capabilities and, customer relationships to support the further assessment, development, and deployment of carbon capture and storage (CCS) in Australia,"
"Together with the Chevron-operated Gorgon CCS project, one of the world's largest integrated facilities, coupled with our existing GHG assessment permits, this new award has potential to expand Chevron's portfolio of CCS assets in Australia,"
Mark Hatfield, managing director of Chevron Australia, said, "These opportunities have the potential to help us lower the carbon intensity of our own operations as well as provide opportunities to help our customers reduce or offset emissions from their activities."
Yesterday, Chevron said it will inject $1 billion into establishing a technology center in Bengaluru, India.
Investors can gain exposure to the stock via EA Series Trust Strive U.S. Energy ETF (NYSE:DRLL) and SPDR Select Sector Fund – Energy Select Sector (NYSE:XLE).
Price Action: CVX shares are up 0.45% at $145.01 at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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