Chevron and Kyushu Electric Sign Wheatstone LNG Sales Agreements
Agreement to deliver 0.8 million tonnes of LNG for up to 20 years
PERTH, Western Australia, September 16, 2011 – Chevron Corporation (NYSE: CVX) today announced that its Australian subsidiaries have signed a Sale and Purchase Agreement (SPA) with Kyushu Electric Power Co. for the delivery of liquefied natural gas (LNG) from the Wheatstone Project in Western Australia.
Under the binding agreement, Chevron, together with Apache and Kufpec, will deliver up to 0.7 million tonnes per annum (MTPA) of LNG to Kyushu Electric for up to 20 years.
Kyushu Electric will also acquire 1.83 percent of Chevron's equity share in the Wheatstone field licenses and a 1.46 percent interest in the Wheatstone natural gas processing facilities to be developed onshore near Onslow. Including the equity participation volume, Kyushu Electric will take delivery of 0.8 MTPA of LNG from the Wheatstone Project.
John Gass, president, Chevron Gas and Midstream, welcomed Kyushu Electric as a foundation customer of the Wheatstone Project.
"We are pleased to build on our relationship with Kyushu Electric as a long term customer of the North West Shelf Venture and, more recently, as a customer of the Chevron-operated Gorgon Project. This SPA is an important milestone as we progress towards a final investment decision in 2011."
Melody Meyer, president, Chevron Asia Pacific Exploration and Production Company, said, "We are working with all levels of the Australian government and anticipate timely project approvals, which will enable a final investment decision to be made. Wheatstone will be one of Australia's largest resource projects and once it is approved will create jobs and substantial economic benefits for the country."
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.
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 2,500 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
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