Chevron inks $60 billion gas deal with Japan and South Korea
10 Sep 2009
The Australian subsidiaries of Chevron, have signed three binding sale agreements yesterday worth $60 billion to supply liquefied natural gas (LNG) to Japan and South Korea, from the Gorgon project in Western Australia.
The agreements are for a total supply of nearly 3 million tons per annum (MTPA) of LNG to Japan's Osaka Gas and Tokyo Gas, and GS Caltex Corporation of South Korea.
Chevron Australia Pty Ltd and Chevron International Gas Inc will supply Osaka Gas 1.375 MTPA of LNG for 25 years and Tokyo Gas will be supplied 1.1 MTPA over 25 years.
Osaka Gas will also purchase 1.25 per cent equity in the Gorgon Project while Tokyo Gas will take a 1 per cent equity stake.
Both the Australian subsidiaries of Chevron have also signed separate agreements to supply GS Caltex with 0.5 MTPA of LNG for up to 20 years.
Chevron said that the LNG to GS Caltex will be supplied from the Gorgon project and other gas within the global Chevron portfolio.
Osaka Gas is one of the world's top five gas utility company and supplies natural gas to approximately 7 million customers in the Kansai region of Japan, while Tokyo Gas is the largest natural gas utility in Japan servicing the Kanto area and the main city of Tokyo among others.