Chevron has found another Japanese customer for gas from its $25 billion Wheatstone liquefied natural gas joint venture, signing a sale and purchase agreement with Japan’s Kyushu Electric Power Company.
Under the agreement, Chevron and its JV partners, US-based Apache Energy and Kuwait’s Kufpec, will deliver up to 0.7 million tonnes per annum of LNG to Kyushu for up to 20 years.
Kyushu will also acquire a 1.83 per cent stake in Chevron’s equity share in the Wheatstone gas field and a 1.46 interest in the project’s processing facilities, to be developed near Onslow.
Chevron announced the first gas sales agreement for Wheatstone in July, signing a deal with Japanese energy utility Tokyo Electric Power Company (TEPCO).
That agreement will see Chevron supply 3.1 million tonnes per annum of LNG to TEPCO for a period of up to 20 years.
Chevron gas and midstream president John Gass welcomed Kyushu Electric as the second foundation customer for Wheatstone.
“We are pleased to build on our relationship with Kyushu Electric as a long term customer of the North West Shelf Venture and, more recently, as a customer of the Chevron-operated Gorgon Project,” Mr Gass said.
“This SPA is an important milestone as we progress towards a final investment decision in 2011.”
Chevron received environmental approval from the state government for the development last month, and is waiting for federal approval before it makes a final investment decision.
The international oil and gas giant says the foundation phase of Wheatstone will consist of two LNG trains, capable of producing 8.9 million tonnes per year, and a domestic gas plant.
