Chevron signs LNG deals with Kyushu Electric

Chevron Australia has signed multiple agreements with Japanese power utility Kyushu Electric Power Co. Inc. for delivery of LNG from Chevron’s Gorgon and Wheatstone gas projects off Western Australia.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Jan. 26 -- Chevron Australia has signed multiple agreements with Japanese power utility Kyushu Electric Power Co. Inc. for delivery of LNG from Chevron’s Gorgon and Wheatstone gas projects off Western Australia.

Under the heads of agreements, Kyushu will receive 300,000 tonnes/year of LNG from Gorgon for 15 years. Kyushu will also acquire 1.83% of Chevron’s equity share in the Wheatstone field licenses and 1.37% interest in the proposed Wheatstone gas processing facilities to be developed onshore at Ashburton North near Onslow.

In addition Kyushu will purchase 700,000 tpy of LNG from Wheatstone for 20 years. This sales volume is over and above the LNG that Kyushu will lift as an equity partner in the project, so that Kyushu’s total uplift will be 800,000 tpy from Wheatstone.

Start of gas production from Gorgon is expected in 2014. Final investment decision on Wheatstone is expected in 2011.

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