Chevron to sell more Gorgon LNG to China

Chevron Australia, operator of the Gorgon-Jansz LNG development off Western Australia, has signed a preliminary agreement with ENN LNG Trading Co. of China to supply LNG from the project beginning in 2018.

Chevron Australia Pty Ltd., operator of the Gorgon-Jansz LNG development off Western Australia, has signed a preliminary agreement with ENN LNG Trading Co. of China to supply LNG from the project beginning in 2018.

Once finalized, the 10-year deal would mean that Chevron would supply ENN with as much as 500,000 tonnes/year of LNG.

ENN operates in 146 cities throughout China and has 11.3 million residential customers and 52,000 industrial and commercial customers.

The company is currently constructing an LNG receiving terminal that it expects to be operational in 2018.

The terms of the deal were not released, but pricing will be linked to oil contracts.

Last week Chevron began to cool down the Gorgon-Jansz export system on Barrow Island following the arrival of a commissioning LNG cargo at the gas plant. When in full production, the project’s three trains will be capable of producing 15.6 million tpy of LNG.

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