Chevron and Kyushu Electric Sign Wheatstone LNG agreements
Posted: 15 September 2011
Chevron Corporation reported that its Australian subsidiaries have signed a Sale and Purchase Agreement (SPA) with Kyushu Electric Power Company 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 0.7 million tons per annum (MTPA) of LNG to Kyushu Electric for up to 20 years.
Kyushu Electric will also acquire 1.83 percent of Chevron's equity share in the Wheatstone field licenses and a 1.46 percent 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 0.8 MTPA of LNG from 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," said John Gass, president, Chevron Gas and Midstream.
"This SPA is an important milestone as we progress towards a final investment decision in 2011."
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 MTPA and a domestic gas plant.