World-Class Gas and Prime Access to the Asia-Pacific Region
Rapid population growth, urbanisation and industrialisation are fueling demand from industrial and utility customers in the South Pacific Region for large volumes of LNG and
Natural gas consumption in the Asia-Pacific region is expected to almost double between 2005 and 2020. The established LNG markets of Japan, South Korea and Taiwan are expected to continue to comprise the bulk of this demand. Emerging markets in North America, China and other Asian countries also will add significant opportunities.
The location of our gas-field permits and close infrastructure – coupled with estimates showing they contain about 40Tcf of gas (about 25 percent of Australia's known gas resources) – means we're in a prime position to meet future market demands.
Innovative Marketing Approach
The Gorgon joint venture participants are aggressively pursuing a number of market opportunities in key customer countries and have adopted a flexible and innovative marketing approach where each participant secures markets for its share of gas. This approach has delivered real benefits to the project:
Chevron Australia has executed Sale and Purchase Agreements (SPAs) with Osaka Gas (1.375Mtpa for 25 years and 1.25 percent equity in the Gorgon Project), Tokyo Gas (1.1Mtpa for 25 years and 1 percent equity in the Gorgon Project), Chubu Electric Power (1.44Mtpa for 25 years and 0.417 percent equity in the Gorgon Project), GS Caltex of South Korea (0.25Mtpa for 20 years), Nippon Oil Corporation (0.3 Mtpa for 15 years) and Kyushu Electric ( 0.3 Mtpa for up to 20 years). ).
Shell sells its LNG on a portfolio basis and has secured several outlets for its equity LNG into which its share of Gorgon LNG will be delivered.
An Australian subsidiary of ExxonMobil has signed long-term sales and purchase agreements with Petronet LNG Limited of India and PetroChina International Company Limited for the supply of LNG from the Gorgon Project. The agreement with Petronet LNG is for the supply of approximately 1.5 Mtpa of LNG over a 20-year term while the agreement with PetroChina is for the supply of approximately 2.25 Mtpa over a 20-year term. Together, these two sales and purchase agreements commit the ExxonMobil subsidiary's share of LNG from the 15 Mtpa Gorgon LNG Project.
Further gas sales in the Asia-Pacific region are expected as participants leverage their international positions in LNG infrastructure and gas markets.
For further information, please contact:
Luke Musgrave, Vice President LNG (Australia)
Andy Calitz, Gorgon Project Director