Chubu signs Wheatstone LNG offtake agreement

Chevron Corp. has signed a nonbinding heads of agreement with Japan’s Chubu Electric Power Co. Inc. for the supply of 1 million tonnes/year of LNG from the Wheatstone project in Western Australia.

Chubu also is a foundation member of Chevron’s Gorgon LNG project. It will now receive a total of 2.5 million tpy from both developments over a 20-year period.

Chevron says 70% of its equity LNG entitlements from Wheatstone are now covered by long-term contracts with Asian customers.

The plant is being constructed at Ashburton North about 7½ km west of Onslow. Initially it will comprise two LNG trains with a combined capacity of 8.9 million tpy as well as production from a domestic gas plant.

The project is a joint venture of Chevron 72.14%, Apache Energy 13%, Kufpec 7%, Shell 6.4%, and Kyushu Electric 1.46%.

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