Chevron Corp. said it plans to spend $29 million to implement lower carbon projects in Western Australia, in part to offset penalties for failing to capture enough emissions from the Gorgon natural gas export project.

Chevron Australia operates and holds a 47.3% stake in the Gorgon liquefied natural gas (LNG) facility. The funding to reduce carbon dioxide (CO2) emissions would be shared in part with joint venture partners ExxonMobil (25%), Royal Dutch Shell plc (25%), Osaka Gas Co. Ltd. (1.25%), Tokyo Gas Co. Ltd. (1%), and Jera Co. (0.417%).

Investing in the CO2 offsets would address a five-year emissions “injection shortfall” at the facility, Chevron said. The package would allow the energy major to fulfill “regulatory obligations through the acquisition and surrender of...