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 Wheatstone natural 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 Wheatstone project.
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 natural 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 (1.46%).