Chevron and Kyushu Electric Sign LNG Deal
Agreement for delivery of LNG from Gorgon Project for up to 20 years
Chevron Corporation (NYSE: CVX) today announced that its Australian
subsidiary has signed a Sales and Purchase Agreement (SPA)with
Kyushu Electric Power Co. for a portion of Chevron′s offtake of
liquefied natural gas (LNG) from the Gorgon Project.
Under the binding agreement, Kyushu Electric will receive 0.3 million
tons per annum (MTPA) of LNG from the Gorgon Project for up to 20 years
beginning in 2015.
'We are pleased to have reached this milestone with Kyushu Electric, one
of the leading companies in the world′s largest LNG market, and we look
forward to expanding this relationship in the future,? said John Gass,
president, Chevron Global Gas. Kyushu Electric and Chevron Australia
also have existing Heads of Agreements in relation to LNG and equity
sales from Chevron′s Wheatstone Project.
The Kyushu agreement was also welcomed by Jim Blackwell, president,
Chevron Asia Pacific Exploration and Production Company. 'Both the
Gorgon and Wheatstone projects are positioned to meet the growing demand
for natural gas in the Asia-Pacific region. Gorgon is more than a year
into construction and remains on track to produce first gas in 2014. We
expect to make a final investment decision on Wheatstone in 2011.?
Chevron is the operator of the Gorgon Project and has an approximate 47
percent interest.
The initial Gorgon Project development, in northwestern Australia, will
include a three-train, 15 MTPA LNG facility and a domestic gas plant.
Chevron is one of the world's leading integrated energy companies, with
subsidiaries that conduct business worldwide. The company's success is
driven by the ingenuity and commitment of its employees and their
application of the most innovative technologies in the world. Chevron is
involved in virtually every facet of the energy industry. The company
explores for, produces and transports crude oil and natural gas;
refines, markets and distributes transportation fuels and other energy
products; manufactures and sells petrochemical products; generates power
and produces geothermal energy; provides energy efficiency solutions;
and develops the energy resources of the future, including biofuels.
Chevron is based in San Ramon, Calif. More information about Chevron is
available at www.chevron.com.
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Some of the items discussed in this press release are forward-looking
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future events or otherwise.
Chevron Corporation
Gareth Johnstone, +65 9728 8375 (Singapore)
