Chevron and Chubu Sign Major Gorgon LNG Deal
Agreement to deliver 1.44 million tonnes annually from Gorgon Project over 25 years
PERTH, Western Australia, 17 December 2009 – Chevron Australia Pty Ltd, Chevron (TAPL) Pty Ltd and Chubu Electric Power Co. Inc. have signed long term Sale and Purchase Agreements1 for 1.44 million tonnes per annum of liquefied natural gas (LNG) for 25 years from the Chevron operated Gorgon Project. Chubu Electric is also buying a 0.417 percent equity from Chevron’s stake in the Gorgon Project.
Chevron Australia Managing Director Roy Krzywosinski welcomed Chubu Electric as a foundation customer and participant in the Gorgon Project.
"Chubu Electric has been a strong supporter of Gorgon for many years and I am pleased to see this relationship culminate in this major, long-term LNG sales contract.
"We also welcome Chubu Electric as an equity partner in Gorgon and look forward to their ongoing participation in the project," said Krzywosinski.
The agreement follows the recent signing of three binding long-term SPAs with Osaka Gas, Tokyo Gas and GS Caltex, a 50 percent-owned Chevron equity affiliate, for delivery of a total of nearly 3 MTPA, as well as a Heads of Agreement with the Korea Gas Corporation (KOGAS) for 1.5 MTPA.
The initial Gorgon Project development will include a three train, 15 million-tonne-per-annum liquefied natural gas facility and a domestic gas plant.
The Final Investment Decision was announced in September this year with construction expected to take up to five years.
The Gorgon Project is operated by Chevron, which will have an approximate 47 percent interest in the project after the sale to Chubu.
Chevron is one of the world's leading integrated energy companies and through its Australian subsidiary, has been present in Australia for more than 50 years. With the ingenuity and commitment of more than 1,500 people, Chevron Australia operates Australia’s largest onshore oil field on Barrow Island and the Thevenard Island oil fields; and leads the development of the Gorgon and Wheatstone liquefied natural gas (LNG) and domestic gas projects.
The company is a foundation participant in the North West Shelf Venture and the Browse LNG development; and is a significant investor in exploration offshore north-west 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
Notes to Editor:
1 The parties signed Heads of Agreements covering these transactions in 2005.
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