Chevron signs agreement with Chubu Electric Power to supply LNG

US-based energy company Chevron has announced that its Australian subsidiaries have signed sales and purchase agreements with Chubu Electric Power, to supply liquefied natural gas (LNG) from the Wheatstone Project in Western Australia.

As part of the deal Chevron, along with Apache Energy and Kuwait Foreign Petroleum Exploration, will supply 1million tonnes per annum of LNG to Chubu for 20 years.

Chevron Gas and Midstream president, Joe Geagea, said that Chubu is currently the partner and customer of the Chevron-operated Gorgon project.

Chevron Australia managing director, Roy Krzywosinski, said that more than 80% of Chevron’s equity LNG from Wheatstone is covered under long-term off-take agreements with customers in Asia. .

"The agreements demonstrate that Wheatstone is well-placed geographically to meet the Asia Pacific region’s growing demand for a safe, reliable and cleaner-burning source of energy," Krzywosinski added.

The Wheatstone Project is situated at Ashburton North, 7.5 miles west of Onslow in Western Australia.

The project includes two LNG trains with a combined capacity to produce about 8.9 million tonnes per annum, as well as a domestic gas plant.

The Wheatstone Project is a joint venture of Chevron Australian subsidiaries, plus Apache Energy, Kuwait Foreign Petroleum Exploration, Shell, and Kyushu Electric Power.

Chevron holds 64.14% interest in the project, while Apache Energy, Kuwait Foreign, Shell, Kyushu Electric and Tokyo Electric Power holds 13%, 7%, 6.4%, 1.46% and 8% interest, respectively.

Chevron has 80.17% interest in the Wheatstone and Iago fields, which will supply 80% of feedgas to the Wheatstone Project.

The other partners in the field include Shell Australian subsidiaries, Kyushu Electric Power and Tokyo Electric Power with 8%, 1.83% and 10% interest, respectively.

In April 2012, Thiess, a Leighton Holdings subsidiary, and Bechtel Oil & Gas Chemicals received an AUD450m ($465.8m) contract to deliver site preparation works at the Chevron-operated Wheatstone project in Western Australia.

---

Image: Chevron’s Australian subsidiaries have signed an agreement with Chubu Electric Power to supply LNG from the Wheatstone project, Australia. Photo: Courtesy of freedigitalphotos.net.