Chevron Signs LNG Agreement with Kyushu

Chevron Corporation’s Australian subsidiary is to supply part of its offtake of liquefied natural gas (LNG) from the Gorgon Project, Australia, to Kyushu Electric Power.

Under the sales and purchase agreement, Kyushu Electric will receive 300,000t of LNG a year from the Gorgon Project for up to 20 years beginning 2015.

Construction for the Gorgon project has been underway for a year and is expected to produce first gas in 2014.

Kyushu Electric has existing heads of agreements with Chevron Australia for LNG and equity sales from Chevron’s Wheatstone Project.

Chevron president Jim Blackwell said both the Gorgon and Wheatstone projects are positioned to meet the growing demand for natural gas in the Asia-Pacific region.