Chevron on Monday announced a non-binding agreement with
Japan-based Tohoku Electric Power Co. (Tohoku) to deliver
liquefied natural gas (LNG) from the Chevron-operated
gas project in Australia.
Financial terms were not disclosed.
Under the agreement, Chevron, together with Apache Energy
and Kuwait Foreign Petroleum Exploration Co. (KUFPEC), is
expected to deliver up to 1 million tpy (MTPA) of LNG
to Tohoku for up to 20 years.
Joe Geagea, president of Chevrons gas and midstream
segment, said he welcomed Tohoku as a major customer of the
We are pleased Tohoku has agreed to source a
significant portion of its annual energy supply requirements
from the Wheatstone Project, which further highlights
customers confidence in Wheatstone as a safe, reliable
energy source, he said.
Roy Krzywosinski, managing director of Chevron Australia,
noted that more than 80% of Chevrons equity LNG
from Wheatstone is now covered under long-term off-take
agreements with customers in Asia.
This off-take agreement for Wheatstone demonstrates
our Australian LNG
projects are in the right geographic location at the right time
to meet Asias rapidly growing demand for cleaner burning
gas, he said.
The Chevron-operated Wheatstone project is projected to
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.
The onshore foundation project is a joint venture between
the Australian subsidiaries of Chevron (operator 72.14%),
Apache (13%), KUFPEC (7%), Shell (6.4%) and Kyushu Electric