Rick Wilkinson
OGJ Correspondent
MELBOURNE, Dec. 7 -- Chevron Australia has signed an offtake agreement with Tokyo Electric Power Co. (Tepco) to sell 4.1 million tonnes/year of LNG from the Wheatstone project over a 20-year term.
The heads of agreement is believed to be worth about $90 billion (Aus.).
In addition, Tepso is planning to acquire a 15% interest in the Wheatstone field licenses along with an 11.25% interest in the proposed gas processing facilities planned for Ashburton North near Onslow on the Western Australian coast.
Western Australian Premier Colin Barnett hailed the agreement by noting that his State will benefit from significant new export earnings and from an additional 200 terajoules of domestic gas, which is part of the project program.
Barnett said the Wheatstone project also would bring new development to Onslow in the form of a deepwater port and the establishment of an 8,000 hectare strategic industrial park at the Ashburton North site.
The initial stage for Wheatstone will have a capacity to produce 8.6 million tonnes/year of LNG and will also include the domestic gas plant.
Chevron expects to make a final investment decision on the project in 2011.