Chevron inks sales deal from Australia LNG project
Chevron said it signed a sale and purchase agreement with Kyushu Electric Power Co. for the delivery of liquefied natural gas (LNG) from the Wheatstone project in Western Australia.
Under the binding agreement, Chevron, together with Apache and Kufpec, will deliver up to 700,000 tpy of LNG to Kyushu Electric for up to 20 years.
Kyushu Electric will also acquire 1.83% of Chevron’s equity share in the Wheatstone field licenses and a 1.46% interest in the Wheatstone natural gas processing facilities to be developed onshore near Onslow.
Including the equity participation volume, Kyushu Electric will take delivery of 800,000 tpy of LNG from the Wheatstone Project.
John Gass, president of Chevron gas and midstream, welcomed Kyushu Electric as a foundation customer of the Wheatstone project.
“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,” he said. “This SPA is an important milestone as we progress towards a final investment decision in 2011.”
Melody Meyer, president, of Chevron Asia Pacific Exploration and Production Co., said: “We are working with all levels of the Australian government and anticipate timely project approvals, which will enable a final investment decision to be made.
“Wheatstone will be one of Australia’s largest resource projects and once it is approved will create jobs and substantial economic benefits for the country,” she added.
The Chevron-operated Wheatstone project will become one of Australia's largest resource projects.
Located at Ashburton North, 7.5 miles (12 kilometers) west of Onslow in Western Australia, the foundation phase of the project will consist of two liquefied natural gas trains with a combined capacity of 8.9 million tpy and a domestic gas plant.
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