Chevron Secures Wheatstone LNG Sales Agreements with TEPCO
Agreement to deliver 3.1 million tonnes of LNG for up to 20 years
PERTH, Western Australia, July 27, 2011 – Chevron Corporation (NYSE: CVX) today announced that its Australian subsidiaries have signed binding Sales and Purchase Agreements (SPAs) with Tokyo Electric Power Company (TEPCO) for the delivery of liquefied natural gas (LNG) from the Chevron-operated Wheatstone natural gas project in Australia.
Under the agreements, Chevron, together with Apache Energy and Kufpec, will deliver up to 3.1 million tonnes per annum (MTPA) of LNG to TEPCO for a period of up to 20 years.
TEPCO is also in discussions with Chevron to purchase an equity share in the titles covering the Wheatstone fields and a percentage of Chevron’s share of the Wheatstone downstream processing facilities.
John Gass, president, Chevron Gas and Midstream, welcomed TEPCO as a foundation customer and potential investor in the Wheatstone Project.
“TEPCO is one of the world’s leading LNG customers. Its support for Chevron’s Wheatstone Project reinforces the strength of the relationship between the two companies that has been built up over many years.”
Roy Krzywosinski, managing director, Chevron Australia, said the Wheatstone Project had completed the front-end engineering and design phase and Chevron remains on track to make a final investment decision (FID) in 2011.
“The TEPCO agreements and other LNG agreements we are finalising give Wheatstone great momentum. The Ashburton North site earmarked for the LNG processing plant is ideally located to unlock the significant gas resources in the western Carnarvon basin.”
The Chevron-operated Wheatstone Project will become one of Australia’s largest resource projects. Located at Ashburton North, 12 kilometres west of Onslow in Western Australia, the foundation phase of the project will consist of two liquefied natural gas trains with a combined capacity of 8.9 MTPA and a domestic gas plant.
Chevron is one of the world's leading integrated energy companies and through its Australian subsidiaries, has been present in Australia for almost 60 years. With the ingenuity and commitment of more than 2,000 people, Chevron Australia leads the development of the Gorgon and Wheatstone natural gas projects; manages its equal one-sixth interest in the North West Shelf Venture; and operates Australia’s largest onshore oilfield on Barrow Island and the Thevenard Island oilfields. The company is also a participant in the Browse liquefied natural gas development and is a significant investor in exploration offshore northwest Australia. In addition, Chevron’s Perth-based Global Technology Centre provides technology support and solutions to the company’s operations in Australia and around the world. www.chevronaustralia.com
Cautionary Statements Relevant to Forward-Looking Information for the Purpose of “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995.
Some of the items discussed in this press release are forward-looking statements about Chevron's activities in Australia. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," “schedules,” "estimates," "budgets" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in prices oCautionary Statements Relevant to Forward-Looking Information for the Purpose of “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995.