Chevron and Kyushu Electric have signed multiple deals for the delivery of liquefied natural gas (LNG) from the Chevron-operated Gorgon and Wheatstone natural gas projects.
Under the agreements, Kyushu Electric expects to receive 0.3mtpa of LNG from Gorgon for 15 years and 0.8mtpa of LNG from Wheatstone for 20 years.
Kyushu also intends to acquire 1.83% of Chevron's equity share in the Wheatstone field licences and a 1.37% interest in the Wheatstone natural gas processing facilities to be developed in northwestern Australia.
The Gorgon project includes a 15mtpa LNG facility and a domestic gas plant in northwestern Australia with Chevron as the operator with an interest of about 47% in the project.
The initial phase of the Wheatstone project will have the capacity to process 8.6mtpa of LNG, and includes a domestic gas plant. Chevron is the operator with a 75% interest in the project.
Work on the Gorgon project began in the second half of 2009 with the first gas planned for 2014, while the other project entered the engineering and design phase in July 2009. A final investment decision is expected in 2011.
