Chevron and Chubu Sign Wheatstone LNG Agreement
Supply of 1 million tons per annum over 20 years expands current partnership.
Perth, Western Australia, April 17, 2012 - Chevron Corporation (NYSE: CVX) today announced that its Australian subsidiaries have signed a non-binding Heads of Agreement (HOA) with Chubu Electric Power Company Incorporated (Chubu) for the delivery of liquefied natural gas (LNG) from the Chevron-operated Wheatstone natural gas project in Australia.
Under the agreement, Chevron, together with Apache Energy and KUFPEC, is expected to deliver 1 million tons per annum (MTPA) of LNG to Chubu for up to 20 years.
Joe Geagea, president, Chevron Gas and Midstream, said today’s agreement further strengthened the company’s relationship with Chubu, which is also a foundation customer and participant in the Gorgon Project.
"Chubu is a long term customer of our Australian natural gas portfolio and is due to receive 2.5 MTPA of LNG collectively from the Gorgon and Wheatstone projects.”
Roy Krzywosinski, managing director, Chevron Australia, said, more than 70 percent of Chevron’s equity LNG from Wheatstone is now covered under long-term off-take agreements with customers in Asia.
“Our Wheatstone and Gorgon projects are strategically positioned to commercialize our significant natural gas position in Australia through satisfying Asia’s rapidly growing demand for reliable, cleaner-burning and safe energy.”
The Chevron-operated Wheatstone Project will become one of Australia's largest resource projects. Located at Ashburton North, 7.5 miles (12 kilometers) 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.
The onshore foundation project is a joint venture between the Australian subsidiaries of Chevron (operator 72.14%), Apache (13%), Kuwait Foreign Petroleum Exploration Company (KUFPEC 7%), Shell (6.4%) and Kyushu Electric (1.46%).
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