Eric Watkins
Senior Correspondent
LOS ANGELES, Nov 22 -- Chevron Australia Pty. Ltd. and Japanese power company Chubu Electric Co. Inc. have signed a heads of agreement for the sale of 1.5 million tonnes/year of LNG from the Gorgon project over a period of 25 years, beginning in 2010.
Australian Trade Minister Mark Vaile valued Chevron's agreement to supply LNG to Chubu at $10 billion (Aus.).
Chevron's announcement did not disclose the terms of the deal, but the firm said the two parties are also discussing the potential transfer of an equity interest in the Gorgon project (OGJ, Oct. 17, 2005, p. 34).
Chevron Australia's general manager of the Greater Gorgon Area, Colin Beckett, said the firm has agreements in place that will provide for the export of more than 65 million tonnes of Australian LNG over 25 years from Chevron's share of the Gorgon project.
The agreement with Chubu follows one struck by Chevron in October to sell 1.2 million tonnes/year of LNG to Tokyo Gas Co. from the Gorgon development, and it takes the project closer to committing all of its 12.9 tcf of natural gas reserves.
Chevron Australia has a 50% operating interest in the Gorgon project. Australian subsidiaries of Royal Dutch Shell PLC and ExxonMobil Corp. hold 25% each.
Contact Eric Watkins at [email protected].