Chevron, Kogas Sign Wheatstone LNG Deal

Chevron is to deliver liquefied natural gas (LNG) to Korea Gas Corporation (Kogas) from its Wheatstone natural gas project in Australia under a new agreement.

According to the Heads of Agreement (HoA), Kogas will buy 1.5 million tonnes per year of LNG from the Wheatstone project for up to 20 years.

About 75% of the LNG is expected to be purchased from Chevron, with the remainder from other Wheatstone hub participants.

Kogas also signed an equity HoA to acquire a 5% interest in each of Chevron’s Wheatstone field licences and in the Wheatstone LNG and domestic gas processing facilities.

Kogas also plans to take delivery of a total of about 1.95mtpa of LNG from the Wheatstone project.

The front-end engineering and design is underway at the Wheatstone project before the final investment decision in 2011.