Chevron, JX Nippon Oil, Energy Corporation sign LNG agreement
Posted: 10 May 2011
Chevron Corporation reported that its Australian subsidiary has signed a Sales and Purchase Agreement (SPA) with JX Nippon Oil and Energy Corporation for a portion of Chevron's offtake of liquefied natural gas (LNG) from the Gorgon Project.
"We are pleased to have JX Nippon Oil and Energy as a customer of the Gorgon Project. Chevron has a long-standing relationship with JX Nippon Oil and Energy, and we look forward to continuing to grow our relationship," said John Gass, president, Chevron Gas and Midstream.
Under the binding agreement, JX Nippon Oil and Energy will receive 0.3 million tons per annum (MTPA) of LNG from the Gorgon Project for 15 years.
"The agreement is another step towards commercializing our equity natural gas in Australia, further demonstrating Chevron's leading ability to meet long-term demand growth in Asia-Pacific," said Roy Krzywosinski, managing director, Chevron Australia.
"Construction of the Gorgon Project is progressing well with first gas expected in 2014."
Chevron is the operator of the Gorgon Project and holds an approximate 47 percent interest.
The initial Gorgon Project development, situated in northwestern Australia, will include a three-train, 15 MTPA LNG facility and a domestic gas plant.