Chevron Australia to Supply LNG to JX Nippon

Chevron Corporation’s Australian subsidiary has signed a sales and purchase agreement with JX Nippon Oil and Energy for a portion of Chevron’s offtake of liquefied natural gas (LNG) from the Gorgon project, Australia.

Under the terms of agreement, JX Nippon Oil and Energy will receive 0.3 million tonnes of LNG per year from the Gorgon project for a period of 15 years.

The initial Gorgon project development will include a three-train, 15mtpa LNG facility and a domestic gas plant.

Chevron Australia managing director Roy Krzywosinski said the agreement is another step towards commercialising the firm’s equity natural gas in Australia.

“Construction of the Gorgon project is progressing well with first gas expected in 2014,” said Krzywosinski.