Chevron Australia Pty Ltd has secured a 1.5 million tonne per annum deal to sell liquefied natural gas from the Chevron-led Gorgon Project to Japan, the world's largest LNG consumer.
Chevron Australia Pty Ltd has secured a 1.5 million tonne per annum deal to sell liquefied natural gas from the Chevron-led Gorgon Project to Japan, the world's largest LNG consumer.
Chevron Australia, a subsidiary of Chevron Corporation, has signed the heads of agreement with Chubu Electric Co. Inc. for the supply of gas from Chevron's share of Gorgon LNG over 25 years commencing in 2010. The parties also are discussing the potential sale and purchase of an equity interest in the Gorgon Project.
The deal is estimated to be worth $10 billion.
The agreement was signed by Jay Johnson, managing director of Chevron Australia, and Shiro Mizutani, executive vice president and director of Chubu Electric.
"Chevron welcomes Chubu Electric as a foundation customer for the Gorgon Project. We have a long standing relationship with Chubu and this demonstrates the value Chevron can offer customers through its leading role in the full gas supply chain," said Chevron Global Gas president John Gass.
"The agreement highlights the momentum behind the Gorgon Project and is a significant step towards the further commercialization of the Gorgon Area gas resources," said Mr Gass.
Chevron Australia has a 50 per cent operating interest in the Gorgon project, with other participants including the Australian subsidiaries of Shell and ExxonMobil which each hold a quarter share of the project.
Chevron Australia now has agreements in place that provide an opportunity to export more than 65 million tonnes of Australian LNG over 25 years from Chevron's share of the Gorgon Project. Chevron continues to pursue opportunities in Asia and North America for the remaining volumes of Gorgon LNG.
The Gorgon Project, in which Chevron Australia holds a 50 percent operating interest, is to include an initial two-train 10 MTPA LNG facility and a planned domestic gas plant located on Barrow Island. The project participants include the Australian subsidiaries of Shell (25 percent) and ExxonMobil (25 percent).
Chevron Corporation is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in over 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing, and distributing fuels and other energy products. Chevron is based in San Ramon, Calif.
State govt release can now be viewed below:
State Development Minister Alan Carpenter has welcomed news from Chevron Australia today that it has secured more sales of liquefied natural gas from the $11billion Gorgon Project.
Mr Carpenter was referring to the Heads of Agreement signed between Chevron Australia and major Japanese power company Chubu Electric Co Inc, regarding the purchase of 1.5million tonnes per annum of Chevron's share of Gorgon LNG over 25 years commencing in 2010.
The Minister said today's news came less than a month after Chevron Australia announced its first foundation customer for Gorgon, Tokyo Gas Co Ltd, a major Japanese utility company.
"This is more great news for WA and the Gorgon Project," he said.
"It also reinforces Western Australia's well-established and valued trade relationship with Japan - the State's largest export market."
Mr Carpenter said the Gorgon Project was set to be one of the most important projects in Australia.
"The project is expected to create up to 3,000 construction jobs and 600 jobs once operational, with more than 6,000 jobs in ongoing business for associated industries nationwide," he said.
The Minister said the State Government was continuing to work with the Gorgon Joint Venture to facilitate construction of its plant at Barrow Island, which was scheduled to start late next year.
