Chevron and Kyushu Electric Sign LNG Deal
Agreement for delivery of LNG from Gorgon Project for up to 20 years
Perth, Western Australia , January 24, 2011 – Chevron Corporation (NYSE: CVX) today announced that its Australian subsidiary has signed a Sales and Purchase Agreement (SPA) with Kyushu Electric Power Co. for a portion of Chevron’s offtake of liquefied natural gas (LNG) from the Gorgon Project.
Under the binding agreement, Kyushu Electric will receive 0.3 million tonnes per annum (MTPA) of LNG from the Gorgon Project for up to 20 years beginning in 2015.
“We are pleased to have reached this milestone with Kyushu Electric, one of the leading companies in the world’s largest LNG market, and we look forward to expanding this relationship in the future,” said John Gass, president, Chevron Global Gas. Kyushu Electric and Chevron Australia also have existing Heads of Agreements in relation to LNG and equity sales from Chevron’s Wheatstone Project.
The Kyushu agreement was also welcomed by Jim Blackwell, president, Chevron Asia Pacific Exploration and Production Company. “Both the Gorgon and Wheatstone projects are positioned to meet the growing demand for natural gas in the Asia-Pacific region. Gorgon is more than a year into construction and remains on track to produce first gas in 2014. We expect to make a final investment decision on Wheatstone in 2011.”
Chevron is the operator of the Gorgon Project and has an approximate 47 percent interest.
The initial Gorgon Project development, in northwestern Australia, will include a three-train, 15 MTPA LNG facility 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, one of Chevron’s four global focus areas for exploration.
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
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